






{"id":24820,"date":"2021-08-16T11:06:35","date_gmt":"2021-08-16T04:06:35","guid":{"rendered":"https:\/\/www.asiapropertyawards.com\/?p=24820"},"modified":"2021-08-16T11:06:35","modified_gmt":"2021-08-16T04:06:35","slug":"strong-demand-and-low-interest-rates-cause-hong-kong-home-prices-to-surge","status":"publish","type":"post","link":"https:\/\/www.asiapropertyawards.com\/en\/strong-demand-and-low-interest-rates-cause-hong-kong-home-prices-to-surge\/","title":{"rendered":"Strong demand and low interest rates cause Hong Kong home prices to surge"},"content":{"rendered":"<p><span data-contrast=\"auto\">Analysts say that the property market\u2019s recovery is driven by low-interest rates that make mortgage repayments achievable<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<figure id=\"attachment_24821\" aria-describedby=\"caption-attachment-24821\" style=\"width: 1000px\" class=\"wp-caption alignnone\"><img decoding=\"async\" class=\"wp-image-24821 size-full\" src=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2021\/08\/processed-9-17.jpeg\" alt=\"\" width=\"1000\" height=\"667\" srcset=\"https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2021\/08\/processed-9-17.jpeg 1000w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2021\/08\/processed-9-17-400x267.jpeg 400w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2021\/08\/processed-9-17-600x400.jpeg 600w, https:\/\/www.asiapropertyawards.com\/wp-content\/uploads\/2021\/08\/processed-9-17-768x512.jpeg 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><figcaption id=\"caption-attachment-24821\" class=\"wp-caption-text\">The current mortgage rate of 2.5 percent signifies that the repayment burden of homeowners is 70 percent lower than the one back in 1997. leungchopan\/Shutterstock<\/figcaption><\/figure>\n<p><span data-contrast=\"auto\">According to <a href=\"https:\/\/www.scmp.com\/business\/article\/3145013\/hong-kongs-lived-home-prices-hit-new-high-economy-rebounds-social-unrest?module=perpetual_scroll&amp;pgtype=article&amp;campaign=3145013\" target=\"_blank\" rel=\"noopener\">South China Morning Post<\/a>,\u00a0Hong Kong home prices have peaked with Centa-City Leading Index (CCL) breaking the previous record set two years ago, as the coronavirus subsides and the economy recovers.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">The Centa-City Leading Index hit 191.34 in the first week of August, which is marginally higher than the high of 190.48 in June 2019 when the social unrest first broke out.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Louis Chan, Asia-Pacific vice-chairman and chief executive of the residential division at\u00a0Centaline, said, \u201cUnder the low interest-rate environment, it is easy for home prices to rise but not fall.\u201d\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">He said that the current mortgage rate of 2.5 percent signifies that the repayment burden of homeowners is 70 percent lower than the one back in 1997, the height of the property market boom.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">The containment of the pandemic has driven domestic\u00a0consumption, boosting the economy and housing market.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Even homeowners who are eager to up sticks and leave Hong Kong amid the political unrest generally have financial holding power and will not be easily persuaded to lower their prices under this\u00a0favourable\u00a0environment.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Despite the 30 percent drop in property transactions via recent stock market volatility last month, Chan is optimistic about the real estate market\u2019s outlook as borders are to reopen to mainland China later this year.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Chan expects a 40 percent increase in transaction volume this year compared to 2020 and a further jump in house prices up\u00a0to 10 percent.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">Martin Wong, director and head of research and consultancy for Greater China at Knight Frank, is similarly hopeful.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">\u201cHong Kong home prices surge mainly due to strong demand coupled with low-interest rates,\u201d said Wong. \u201cAs monthly mortgage payments are lower than rents, it will encourage more people to buy than rent.\u201d<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/www.asiapropertyawards.com\/en\/hong-kong-home-prices-remain-flat-in-june-after-reaching-two-year-high\/\" target=\"_blank\" rel=\"noopener\"><strong>More: Hong Kong home prices remain flat in June after reaching two-year high<\/strong><\/a><\/p>\n<p><span data-contrast=\"none\">Knight Frank\u2019s revised forecast for this year\u2019s home price growth changed from five to eight percent.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"none\">\u201c[The CCL] is the first indicator to show Hong Kong used home prices at a historical high. The government\u2019s Rating and Valuation data should reflect it in the third quarter,\u201d he said.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><em><span class=\"TextRun SCXW232633876 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW232633876 BCX0\">The Property Report editors\u00a0<\/span><span class=\"NormalTextRun SCXW232633876 BCX0\">wrote<\/span><span class=\"NormalTextRun SCXW232633876 BCX0\">\u00a0this article. For more information, email:\u00a0<\/span><\/span><a class=\"Hyperlink SCXW232633876 BCX0\" href=\"mailto:propertyreport@propertyguru.com\" target=\"_blank\" rel=\"noreferrer noopener\"><span class=\"TextRun Underlined SCXW232633876 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW232633876 BCX0\" data-ccp-charstyle=\"Hyperlink\">propertyreport@propertyguru.com<\/span><\/span><\/a><span class=\"TextRun SCXW232633876 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW232633876 BCX0\">.<\/span><\/span><span class=\"TextRun SCXW232633876 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW232633876 BCX0\">\u00a0<\/span><\/span><span class=\"EOP SCXW232633876 BCX0\" data-ccp-props=\"{&quot;201341983&quot;:1,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:270}\">\u00a0<\/span><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Analysts say that the property market\u2019s recovery is driven by low-interest rates that make mortgage repayments achievable\u00a0<\/p>\n","protected":false},"author":12,"featured_media":24821,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[92,1],"tags":[171,1104,2233,2232],"class_list":["post-24820","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-property-report","tag-hong-kong","tag-house-prices","tag-low-interest","tag-mortgage-rates","news_country-hongkong","news_author-property-report"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - 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