Experts believe the real estate market will remain fairly resilient in the second half of the year.
Although the government has introduced more measures to curb rising property prices, developers are set to sell at least 10 new projects in the second half of the year, providing about 4,000 residential units. While high inflation is likely to persist, some experts believe the measures may not have a significant impact on the property market.
The number of residential property transactions dropped significantly after the government introduced further cooling measures in mid-June. Jeffrey Ng Chong-yip, senior executive director at Hong Kong Property, predicts residential transactions will continue to shrink in the second half, but says the situation is not going to get too serious.
He believes the transaction volume in the luxury property market will be supported by the launch of new projects. 'Developers are completing a few new projects and would prefer to see them sold to generate revenue, so they will put their new projects on the market in the second half of the year,' Ng says. 'Since these are mainly luxury properties, the number of transactions of homes costing more than HK$10 million will not see a significant drop.'
In addition to Imperial Cullinan by Sun Hung Kai Properties, new projects could include developments by Kerry Properties on Des Voeux Road West and Happy Valley; K Wah International's Chantilly in Mid-Levels East; Marinella, a project in Shum Wan co-developed by Sino Land, Nan Fung Group and K. Wah International; and New World Development's Chun Fai Terrace in Tai Hang and Providence Bay, co-developed by Sino Land, Nan Fung Group, in Pak Shek Kok, Tai Po.
Ng says property prices do not have much room for downward adjustment. 'High inflation has steadily lifted rental returns, while the low mortgage interest rates continue to be attractive to investors.'
