The conditions of skyrocketing property prices

What is mad? It is about 2% monthly increase.

Why is it 2%? According to the track record, property prices have soared above this level on a monthly basis. The SAR Government will often see the property market as being overheated and have the opportunity to issue a slick regulation.

According to the information from the Rating and Valuation Department, since April last year, there has been no single month increase of more than 2%, and the month of the largest increase has risen 1.8% month-on-month in February of this year, but this situation has been due to a number of persistent stimuli. The accumulation of factors in property prices may break down and there will be a rush.

The King of Lands Effect – This is an important factor affecting the short-term property market. New Land yesterday won the king of commercial and residential areas in Kai Tak for 25.16 billion yuan. It surpassed Nan Fung last year with 24.6 billion won of a commercial neighbourhood and became the King of New Territories in Hong Kong. The land price reached 18,000 yuan to create a new high in East Kowloon (which includes shopping mall floors), with a total investment of 40 billion yuan. It is expected that the price will be as high as 30,000 yuan after completion. Will second-hand property prices in Kai Tak and even East Kowloon be “high in the valley”? Promotion of a second-hand property, will not say that after three years, the off-shelf should be 30,000 yuan, how much is it to sell now? This “starting up” atmosphere is bound to spread in the market.

Developers are willing to bid for the market

A second-hand linkage, a report from Midland Property, pointed out that in the first four months of this year, about 4,435 new discs (including new discs and cargoes) were sold in the new disc, of which the usable area was more than 1,000 square feet and the average price was more than 30,000 yuan. Followed by 200 square feet or less of “mini-disc” with an average price of over 24,200 yuan; on the other hand, the average area of ​​401 to 600 square feet and 601 to 800 square feet of practical units is approximately 18,000 yuan each. Class area is the lowest. The figure shows that, based on the average price, a significant proportion of the unit price is already 20,000 yuan.

Under the circumstances that developers are willing to offer prices and get market acceptance, they naturally encourage small property owners to also be willing to offer prices. Recently, leading second-hand housing estates have frequently been broken, and there is even a tendency to expand into second-tier housing estates. In the second line, second-hand property prices have seen a cycle of pushing up property prices, which in turn has stimulated developers to have more room for fare increases.

The rental season creates a buying investment atmosphere

The peak rental season – May to August, is generally regarded as the peak rental season. As seen from the track record, the overall rent will also have a better increase during the period, creating an atmosphere for buying property investment leases and bringing support to the rising property prices. In the coming months, we must pay attention to the rise in rents, the rate at which second-hand market capitalization is digested, and, in particular, the new occupation of rents. If the increase is large, it will add fuel to the property prices.

Side Effects of Land Debates – Until the end of September this year, the government is conducting a major debate on land supply, seeking social consensus to increase land, but there are no side effects, and society is constantly being reminded of the problem of insufficient supply of land. It is easy to think of public and private buildings. In the future supply, “will you buy more and more expensive” will be gradually evolved into a serious supply concern that “the later you buy”, triggering a wider panic buying and worthy of attention.

Interest rate hike is not expected. As mentioned in the Japanese column yesterday, it is still unclear whether interest rates in Hong Kong will follow the rise in the United States in June this year. If interest rates are not expected to increase, it may trigger the prospective buyers.

Whether or not the major second-hand housing estate transactions this week will be “started”, we must pay close attention.