After rugged 2019, the overall economy fell into recession and entered 2020
Although the market conditions have not improved, with the signing of the first-phase trade agreement between China and the United States, the United States recently removed the country from the list of currency manipulation countries. In the second stage of the negotiations, goodwill was released. At the same time, Hong Kong stocks have also rebounded. The HSI has reached a recent high of 29,000 points, adding a lot of good news to the market.
At the same time, there are also some good news when entering the property market in 2020
First of all, the new market is active immediately after entering the new year. In the first half of January, the overall new market sales have reached about 900 units, which has surpassed the new month’s new month. Sales, even if the long holiday of the Chinese New Year is approaching, I believe that the sales of new sales this month will inevitably exceed 1,000 to 1,200 units.
In addition, the continuation of the fruitful harvest of the government’s land sales market last year, and the land sales market has continued to record good results in recent months. Recently, Chinese consortia have come to Hong Kong to buy land for development. The 3.5 billion yuan won the government’s residential land in the Qingshan Bay section of the Castle Peak Road in Tuen Mun, becoming the Group’s first touchstone to buy land in Hong Kong.
Furthermore, together with CITIC Pacific last month, it won 3.2 billion yuan for the luxury residential land at 135 Tai Hang Road, Mid-Levels East of Hong Kong Island, and two government-owned sites within a month, both of which were funded by the Chinese consortium
It happened, and still did not affect the desire of domestic real estate companies to invest in Hong Kong. In addition, the government tendered for two plots of land from the past month, and received as many as 25 and 16 consortium bids, reflecting that regardless of Chinese investment Consortia and local developers are still “craving for land.”
I believe everyone also remembers that many mainland real estate companies have come to Hong Kong to buy land and build houses as early as five or six years ago. Perhaps during the period, they have been affected by mainland policies, which may reduce the number of Chinese-funded consortiums investing in Hong Kong in recent years. However, in general, the share of domestic real estate companies in the local land purchase market has already become the new normal in the property market. Furthermore, from another perspective, land purchase in Chinese consortia has become more active, and competition among developers is natural. The increase will also have a certain supporting effect on future land prices.
In fact, although property prices are in the consolidation period in recent months, there is still no obvious sign of adjustment in land prices in the near future. Developers are still confident in the market outlook. At the same time, from the recent new market perspective, the pricing of individual developers is still aggressive. The consolidation of the overall secondary market is still quite limited.
Articles by other expert authors have been posted on the website of Sing Tao Real Estate. Welcome to browse and ask questions immediately. Sing Tao Real Estate will arrange the author to answer in person.