According to the latest Chief Executive's Policy Address, major developers in Hong Kong are actively launching new projects and employing low-price strategies to attract potential buyers' attention.
Against this backdrop, Lam Tat Man, General Manager of Sales (1) at Henderson Property Agency, pointed out in an interview that the current property market trends are influenced by various factors, including changes in U.S. interest rates and the gradual improvement of Hong Kong's economy.
He predicts that with market expectations of a U.S. interest rate cut by mid-next year and the gradual improvement of Hong Kong's economic conditions, property prices are likely to rebound next year.
Lam Tat Man believes that when pricing new projects, multiple factors will be considered. Taking the example of the Hill Paramount project under his company, located in Cheung Sha Wan, besides referencing the selling prices of similar new projects in Kowloon, factors such as the project's positioning, transportation, amenities, and landscape advantages will also be taken into account.
Hill Paramount is situated at the intersection of the Tsuen Wan Line and Kwun Tong Line, connecting the core business districts of Hong Kong Island and Kowloon, and is close to Kowloon Tong's Festival Walk, providing a comprehensive "15-minute living circle."
Despite its location in the city, the project is backed by Bishop Hill, and high-rise units offer distant views of Lion Rock, creating a tranquil living environment for residents. The residential units feature high ceiling heights, with the standard unit's inter-floor height approximately 3.5 meters and the top-floor special units reaching up to 4 meters, enhancing spatial perception and flexibility, such as increasing storage space.
Additionally, the three-in-one terrace design on standard floors utilizes a swing door layout to help expand living space.
Discussing this year's sales performance, Lam Tat Man mentioned that the Baker Circle series in Hung Hom has sold 448 units, with a total transaction amount exceeding HKD 2.72 billion, averaging about HKD 6.1 million per unit and HKD 21,606 per square foot. Meanwhile, the ONE INNOVALE series in Fanling has sold 1,488 units, with a total transaction amount exceeding HKD 7.33 billion, averaging about HKD 4.927 million per unit and HKD 14,872 per square foot.
In addition, THE HENLEY and HENLEY PARK in Kai Tak have sold 588 and 274 units, with average transaction prices of HKD 10.79 million and HKD 9.35 million, and average transaction prices per square foot of HKD 28,314 and HKD 21,756, respectively.
Regarding the future direction of the property market, Lam Tat Man predicts that as the U.S. interest rate signals a peak and Hong Kong's economy gradually recovers, the property market will gradually stabilize next year, and prices are expected to rebound. He pointed out that in the first three quarters of this year, the cumulative number of bankruptcy applications by U.S. companies reached 516, two fewer than the same period in 2020.
Furthermore, the inflation situation in the United States is under control, with last month's Consumer Price Index showing a year-on-year increase of 3.2%, lower than market expectations. The latest interest rate futures indicate a 100% likelihood that the Federal Reserve will keep interest rates unchanged at the meetings next month and in January next year, with market expectations of a possible interest rate cut by mid-next year.
Lam Tat Man emphasized that Hong Kong's economy is gradually recovering, with improvements in retail industry data and unemployment rates remaining at relatively low levels. These positive signs of economic improvement are expected to contribute to an increase in residential demand. He predicts that as demand improves, the property market will gradually stabilize, and property prices are expected to rebound next year.
