Chu Ip Pui Executive Director, Kerry Properties

With the new mortgage insurance scheme allowing buyers to borrow up to 90% of a property's value, units priced at around HK$10 million—two- and three-bedroom flats in the New Territories, in particular—have become hot commodities. The new measure is helpful in alleviating financial pressure on first-time buyers and those looking to acquire new property, which in turn will help reactivate the home replacement chain, making it easier for home owners to sell their current unit and purchase a larger one. On the other hand, however, the vacancy tax will raise costs, including tax payments and renovation fees, for developments, therefore more discussions surrounding this topic are perhaps necessary. By creating more Green Form subsidised homes, Home Ownership Scheme flats and transitional housing units, the government can curb the public's anger towards the city's dire lack of housing. That said, long-term land supply remains critically insufficient—a problem that could be tackled by collaborations between the public and private sectors. We think that in 2020, home prices will continue to be plagued by uncertainties, but demand will remain strong for small- and mediumsized homes. Considering the possible risks and vulnerabilities, we are cautious about the future of the market.

Demand remains strong for small- and medium-sized units