The head of the Real Estate Developers Association, Stewart Leung, expressed optimism about the future of the local property market. He mentioned that second-hand property prices in August had hit an eight-year low but expected a gradual rebound in the market. Leung attributed this positive outlook to the recent policies introduced by the Chinese government to boost the economy, which had a positive impact on the stock market.
During a TV program, Leung emphasized the strong connection between the property market and the overall economy of Hong Kong. He highlighted that a thriving economy is essential for a healthy property market, as people need financial stability to make significant purchases such as buying a house. Leung believed that as the economy improves, the property market would also see positive growth.
Despite his positive predictions, Leung cautioned that it would take some time for the property market to show significant improvement even after the implementation of favorable policies. He noted that unlike stock markets, where changes can happen rapidly, the property market operates at a slower pace due to the time required for construction and development.
Leung had earlier forecasted a potential increase of five to 10 percent in property prices for the year. He based this projection on his belief that the size of Hong Kong’s economy would allow for a quicker recovery compared to other regions. Additionally, Leung anticipated that developers would adjust their property prices in response to improving market conditions.
When asked about his personal stance on buying property, Leung clarified that he does not engage in speculative behavior. He emphasized the importance of affordability for buyers, stating that purchasing a flat should be based on financial capacity rather than speculation.
In conclusion, Leung’s positive outlook on the gradual rebound of the property market in Hong Kong reflects his confidence in the economy’s recovery and the potential for growth in the real estate sector. While acknowledging the challenges ahead, he remains hopeful that the property market will improve as economic conditions continue to strengthen.