The value of the Hong Kong property market has evaporated by NT$2.6 trillion in more than 2 years, which is equivalent to 520,000 units in the No. 1 City of Shatin. Shi Yongqing: Mr. Cai has no choice.
One of the focuses of this year’s Budget is whether Financial Secretary Paul Chan Mo-po will completely cancel the “hot policies” in the property market so that the property market and Hong Kong economy can recover as soon as possible. Mr Cai recently said that it is not appropriate for the government to intervene to reduce spicy food at this time, but will evaluate the property market dynamically and consider affordability, supply of the property market, etc., and will not sets hard targets for reduction. spicy food.
With local interest rates rising and the external economy slowing down, buyers are pessimistic about the market outlook, and the trend in Hong Kong property prices remains weak. Chen Yongjie, Vice Chairman of Residential and Residential Department of Centaline Real Estate Asia Pacific, said that according to Centaline Big Data, the average price per square foot of second-hand private residential property in Hong Kong fell to NT$12,227 in January this year, a month . -monthly down 1.2%, which was the same as the historic high of 16,033 in September 2021. Yuan comparison, property prices fell by almost 24% in less than two and a half years, a decline that has exceeded the financial 2008 tsunami. The average property price of second-hand private property in Hong Kong also fell from a peak of 9.83 million to 7.46 million. He described the current property market as already in dire straits and urged the complete scrapping of all hot property market policies.
Data shows that the price of second-hand private property rose to NT$5,677 per square foot in March 2008. However, under the impact of the financial tsunami, the price dropped to NT$4,634 in January 2009 before ending. price fell by 18%.
Hong Kong’s total property market value fell below 10trillion yuan
In the past ten years, the number of private residences in Hong Kong has increased by around 12%, from around 1.135 million in 2015 to almost 1.27 million currently. Faced with the drop in property prices, a large amount of people’s wealth has evaporated in an instant, and they have even become owners of negative equity. This has severely reduced consumer sentiment and dealt a heavy blow to all walks of life in Hong Kong. Chen Yongjie said that the total property market value of Hong Kong reached a maximum of 12.14 trillion yuan in September 2021. However, as of last month, the total property market value of Hong Kong had fallen below 10 trillion yuan to 9.48 trillion yuan, with more than 26,600 yuan evaporated in more than two years. billion, which corresponds to the average net worth of all private property owners shrinking by 2.096 million yuan.
2.6What exactly is the concept of a trillion yuan?
The evaporated NT$2.6 trillion means that at the current market value, you can buy “250,000 units in Taikoo Shing”, “360,000 units in Yingwan Garden”, “390,000 units in Metropolis City” or “520,000 of units in Shatin City One” unit”. The top ten housing estates in Hong Kong provide more than 99,000 units. The current market value has fallen to about NT$714 billion, down 27% from the peak of NT$980.6 billion in September 2021; Taikoo Shing, Quarry Bay, which has the title “middle-class housing estate”, The market value decreased from about NT$189.4 billion to about NT$134.8 billion, with a sale price average of NT$10.63 million per unit.Tung Chung Sunrise Gardens and Tseung Kwan O New City have the lowest city values, approximately NT$39.3 billion and NT$46.3 billion, with average selling prices per unit of NT$7.39 million and NT$6.83 million. Next is Shatin City One, with a current market value of about NT$53.8 billion and an average selling price of NT$5.06 million per unit.
“MOUNT NICHOLSON” ascended the Peak to the throne of “Asia’s Building King” under the epidemic. At the end of 2021, Suite D on the 16th floor was sold by bidding, with a usable area of 4,544 square feet. the transaction price was nearly NT$640 million, and the price per square foot was NT$140,800. A new peak for direct strata housing in Asia. 2.6 trillion yuan, enough to buy 4,158 “Asia’s King Buildings”.
BudgetCase needsPromote more new policies to support the property market
The Chairman of Centaline Group, Shi Yongqing, pointed out in his column that what society is most concerned about now is that the fall in property prices will evaporate a great deal of the wealth accumulated in Hong Kong society, harming’ n serious consumption intention of the people and ability to invest, making it difficult for Hong Kong’s economy to recover, Recovery motivation. Under this situation, Mr. Choi has no choice but to take advantage of this budget to launch more new policies to support the Hong Kong property market.
Under normal circumstances, the property market will improve after the Lunar New Year, and the Indian Summer scene will appear after the Spring Festival. Hong Kong property prices have fallen by more than 20%, and many more people can afford them. If the Prime Minister introduces policies that are beneficial to the property market this time, Hong Kong property prices will have the opportunity to stop falling and stabilize during the Indian Spring Festival.
A fall in the property market triggers a negative impact on wealth
According to a research report published by the Legislative Council in 2021, home ownership has become an important source of wealth for wealthy families. According to statistics from the Department of Rating and Valuation, the market value of private residential property in Hong Kong is roughly estimated to have tripled to approximately HK$12 trillion between 1997 and 2019, which is better than the GDP growth rate of 109%. In 2019, the total value of private residential property in Hong Kong was about 4 times the GDP, which is much higher than the 1.6 times in the United States. The report also mentioned that the impact on wealth brought about by changes in property prices can have a significant impact on local consumption and GDP.
Currently, many people’s wealth has evaporated, which has produced a strong “negative wealth effect” “Consumer confidence has been negatively affected, and residents will reduce their spending. “Going north to spend ” or one of the actions of the Hong Kong people to reduce spending can make the Hong Kong market worse.
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The original article was published on AM730
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