Property Prices in Hong Kong May Have Bottomed Out, Says Sector Head Stewart Leung Chi-kin
Economic Indicators Point to Property Price Recovery
Stewart Leung Chi-kin, the chairman of the Real Estate Developers Association, indicated that property prices in Hong Kong have bottomed out, suggesting that a slow rebound is anticipated. A rise in the stock market could positively influence the economy, where Leung noted earlier predictions of 5 to 10 percent growth in home prices this year remain viable.
Impact of the Stock Market on Real Estate
- If the economy recovers, the property market has the potential to improve.
- The recent growth in the Hang Seng Index by 10.2 percent, after a 13 percent increase, reflects economic optimism.
- Leung emphasized that more disposable income will lead to increased purchasing power, particularly in the housing market.
Beijing's Stimulus Package
The stimulus package introduced by the central government is expected to bolster both the economy and the property sector. Key initiatives include:
- Reduction in reserve requirement ratios.
- Lower existing mortgage rates.
- Liquidity support of 800 billion yuan ($113 billion).
Leung predicts that developers will start increasing prices for new properties as market sentiment improves.
Future Outlook and Concerns
While Leung is optimistic, he recognizes global economic challenges. Regardless, Hong Kong stands to recover quicker, bolstered by support from the central government.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.