Colliers Property: Hong Kong Withdraws Spicy Measures to Stabilize Property Prices, Residential Property Transactions Expected to Increase by 70% in the Next 4 Months.

On February 28th, Mirae Asset Property responded to a new budget proposal and the Hong Kong Monetary Authority's suspension of the stress test. The Executive Director of the Residential Department, Bu Shaoming, stated that the budget proposal was in line with public opinion and the suspension of the stress test was a pleasant surprise. He welcomed the decisive measures taken by the Hong Kong government, believing that it could immediately bring five positive impacts to the property market, stabilizing property prices and stimulating property transactions. Over the next four months, he anticipated a potential 70% increase in transactions for both new and second-hand residential properties. Bu Shaoming particularly favored properties valued between 5 million and 20 million Hong Kong dollars, expecting a 50% increase in transactions for such properties by 2024. He also had high hopes for ultra-luxury properties, predicting a rise in residential registrations from 151 cases to an estimated 220 cases this year, a nearly 46% increase and a record high. To gauge the opinions of Hong Kong citizens after the budget proposal, Mirae Asset Property launched a new polling feature on their "Mirae Property" app. As of 2 pm today, nearly a thousand customers had expressed their views, with over 60% indicating an interest in entering the market after the budget proposal. Among those interested in entering the market, nearly 70% intended to buy for personal use, while about 30% planned to invest. Bu Shaoming pointed out that as interest rates are still high and the possibility of a rate cut in the US remains uncertain, the stabilizing effect of the budget proposal may not lead to an immediate increase in property prices. The true power of the budget proposal will only be evident once interest rates start to fall. He suggested that those interested in entering the market should focus on properties with higher rental returns or sought-after hot properties that have seen significant price drops in order to potentially achieve faster price increases and outperform the market.