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

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