Everything about Landscope Christie's International Real Estate and the Hong Kong luxury property market
After 17 successive interest rate increases, the United States Federal Reserve has finally halted the rate hike last week, signaling the possible advent of a period of stabilization. The local property market hailed such a move and property stocks firmed up immediately.
The global financial and commodity markets have experienced a roller-coaster ride in the past few weeks, triggered by inflation and interest rate hike fears. The local property transactions are victimized as buyers shun the market. Sellers have to slash price to meet buyers' demand, which has been weakened since last March. For the first time since the market recovery after Sars in 2003, punters have suffered real loss as they sold properties that were bought a year ago.
After a flurry of buying spree in February and March, the sales market has quieted down in recent weeks due to a revived fear of interest rate hike. Some developers are beginning to slash price of their remaining stock. Some are teaming up with financial institutions to offer more mortgage incentives.
The Rating and Valuation Department recently released its preliminary findings of property market in 2005. In particular, the forecast supply of private domestic units in 2006 and 2007 is most alarming.
Interest rate movement has been dominating market sentiments in the last few months and it appears that it will continue to be a decisive factor in the near future. However, as we are entering the traditional competitive months for mortgage business, banks are stepping up sales campaigns to grab a bigger slice of this lucrative market.