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Wednesday 5 November 2008
Now is no time to buy flats, says Stanley Ho, as sales fall by 18pc
Tycoon Stanley Ho Hung-sun yesterday advised against buying flats, while the latest statistics showed the number of property sales last month fell by almost 18 per cent.
Now is no time to buy flats, says Stanley Ho, as sales fall by 18pc
Amy Nip, Fox Yi Hu and Peggy Sito 5 November 2008
Tycoon Stanley Ho Hung-sun yesterday advised against buying flats, while the latest statistics showed the number of property sales last month fell by almost 18 per cent.
Mr. Ho, president of the Real Estate Developers’ Association, said it was not the right time to buy property, although he expressed confidence in the long-term performance of Hong Kong’s economy.
Asked if he would buy in the current property market, he said: “No. [I think you] shouldn’t buy anything now.”
He said it would take at least six months for the housing market to find a clear direction. “Seeing such big turmoil, we have to observe [for] at least half a year,” Mr. Ho said.
He called for people to have confidence in the resilience of the Hong Kong economy in the long run.
“In Hong Kong, I have seen all the turbulence [over the years],” he said. “The most important thing is that people should have confidence. I myself am very confident.”
According to the Land Registry, property transactions in Hong Kong last month fell 17.8 per cent month-on-month to 6,054 deals, the least since January 2006.
But agents said the worst was yet to come, predicting that the total number of deals in the market would drop to the 5,000 level, which is close to the lowest mark of 4,622 lodged in February 2003 during the severe acute respiratory syndrome outbreak.
The figure of 6,054 transactions was 54.2 per cent lower than last October. The decline came as demand softened in both the primary and secondary flat markets and investors stayed away from the office sector.
The value of total transactions dropped 19.6 per cent to HK$18.9 billion as weaker demand - especially in the high-end sector - affected sales.
Among the total transactions, the number of home purchases dropped at a faster pace, with a 22.3 per cent fall month on month, or a 58.1 per cent decline year on year to 4,719.
The total value of residential transactions last month was HK$16.3 billion, down 13.1 per cent from September and 62.9 per cent from October last year.
“The property market has been seriously hit since the global credit crisis worsened at the end of September,” Patrick Chow Moon-kit, a research manager at Ricacorp Properties, said. “Sales activity declined dramatically in October, and that will be reflected when the Land Registry announces the figures next month.”
The official figures for October better reflect market activity in September because of the four-week lag between a transaction and its registration. Mr. Chow said the total number of property transactions to be reported by the Land Registry next month could drop to between 4,700 and 5,000.
“This will be the second-lowest since February 2003,” he said.
Tightening credit by Hong Kong banks was cited as a reason for the decline in transactions.
Mr. Chow said market sentiment was better than during the Sars outbreak or the 1998 financial crisis. But he still expected prices to fall 15 to 20 per cent in the next six months.
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Now is no time to buy flats, says Stanley Ho, as sales fall by 18pc
Amy Nip, Fox Yi Hu and Peggy Sito
5 November 2008
Tycoon Stanley Ho Hung-sun yesterday advised against buying flats, while the latest statistics showed the number of property sales last month fell by almost 18 per cent.
Mr. Ho, president of the Real Estate Developers’ Association, said it was not the right time to buy property, although he expressed confidence in the long-term performance of Hong Kong’s economy.
Asked if he would buy in the current property market, he said: “No. [I think you] shouldn’t buy anything now.”
He said it would take at least six months for the housing market to find a clear direction. “Seeing such big turmoil, we have to observe [for] at least half a year,” Mr. Ho said.
He called for people to have confidence in the resilience of the Hong Kong economy in the long run.
“In Hong Kong, I have seen all the turbulence [over the years],” he said. “The most important thing is that people should have confidence. I myself am very confident.”
According to the Land Registry, property transactions in Hong Kong last month fell 17.8 per cent month-on-month to 6,054 deals, the least since January 2006.
But agents said the worst was yet to come, predicting that the total number of deals in the market would drop to the 5,000 level, which is close to the lowest mark of 4,622 lodged in February 2003 during the severe acute respiratory syndrome outbreak.
The figure of 6,054 transactions was 54.2 per cent lower than last October. The decline came as demand softened in both the primary and secondary flat markets and investors stayed away from the office sector.
The value of total transactions dropped 19.6 per cent to HK$18.9 billion as weaker demand - especially in the high-end sector - affected sales.
Among the total transactions, the number of home purchases dropped at a faster pace, with a 22.3 per cent fall month on month, or a 58.1 per cent decline year on year to 4,719.
The total value of residential transactions last month was HK$16.3 billion, down 13.1 per cent from September and 62.9 per cent from October last year.
“The property market has been seriously hit since the global credit crisis worsened at the end of September,” Patrick Chow Moon-kit, a research manager at Ricacorp Properties, said. “Sales activity declined dramatically in October, and that will be reflected when the Land Registry announces the figures next month.”
The official figures for October better reflect market activity in September because of the four-week lag between a transaction and its registration. Mr. Chow said the total number of property transactions to be reported by the Land Registry next month could drop to between 4,700 and 5,000.
“This will be the second-lowest since February 2003,” he said.
Tightening credit by Hong Kong banks was cited as a reason for the decline in transactions.
Mr. Chow said market sentiment was better than during the Sars outbreak or the 1998 financial crisis. But he still expected prices to fall 15 to 20 per cent in the next six months.
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