Centaline: New mortgage insurance measures changed the market atmosphere and property market adjustment ended.
Hong Kong Wen Wei Po (by Li Zitian)
Housing demand that had been suppressed for a long time was released after the government relaxed the mortgage insurance. The second-hand properties are popular. Two major property price indexes rebounded. Among them, the latest Centa-City Leading Index (CCL) is reported at 179.40 points, up 0.22% per week, and it is the biggest increase in 15 weeks after 10 consecutive weeks of decrease. As for three rises and one fall of the property prices in four districts, New Territories West has the most significant increase and becomes the main driving force for the rebound. This company analyzed that the government introduced the new mortgage insurance to improve the property market atmosphere and confirmed that property market adjustment ended.
The Senior Co-director of Centaline Research Department, Woo LeungSing pointed out yesterday that the property market improved at the week the government raised the mortgage insurance property price upper limit, and the three overall CCL indexes rose immediately, ending 10 weeks of falling. CCL, CCL Mass and CCL (small and medium-sized units) rebounded significantly, confirming the end of the property market adjustment.
CCL (small and medium-sized units) rebounded by a range of 0.27%.
CCL is the latest reported at 179.40 points, up 0.22% per week and is the fastest in 15 weeks. The Mass Centa-City Leading Index(CCL Mass) is 180.41 points, up 0.37% per week and is the fastest in 18 weeks. The CCL (small and medium units) is 179.11 points, up 0.27% per week and is the fastest in 15 weeks. The three major indexes rose together for the first time in 11 weeks and ended the 10 consecutive weeks of decrease. CCL (large units) is 180.82 points, slightly down 0.03% per week and it has decreased by 0.21% for two weeks. The luxury property prices have been narrowly up and down around 180 points in the past 4 weeks, waiting for an upward break.
New Territories West leads the market to rebound.
The property prices in four districts had three up and one down in this week, and ended the previous 10 weeks of downward adjustment. The price increase in the New Territories West was the most significant, leading the market to rebound and the early adjustment of the property market also began in the New Territories West. New Territories West property price index is reported at 163.56 points, up 1.38% per week, and the increase is the highest among four districts. Kowloon property prices index is reported at 176.45 points, up 0.35% per week, and ends the falling for seven weeks. Hong Kong Island property price index is reported at 185.00 points, up 0.25% per week. New Territories East property price index is 190.01 points, a new low in 29 weeks and down 0.78% per week, also it has decreased a totally of 1.64% in four consecutive weeks.
Midland Index ends 14 consecutive downward.
On the other hand, the latest Midland Property Price Index from October 30 to November 5 was reported at 167.77 points, slightly up 0.26% per week, and the property prices rebounded to steady after 14 weeks of decline. The latest indexes roughly reflect the trading of temporary sale and purchase contracts signed two weeks ago (October 16 to 22), and the situation in this period of time reflects the market conditions after the announcement of the policy address.
With the slight rebound in the Midland property price index, the cumulative increase in property prices so far this year has slightly widened to about 4.2%. However, if compared with four weeks ago, the index still fell about 0.15% and had fallen about 5.15% compared with the record high.
The property price index of this company has rebounded slightly, mainly due to the promotion from Hong Kong Island and the New Territories. Among them, the New Territories Index is reported at 158.34 points, up 0.81% per week, and it has accumulated rise of 4.29% so far this year. The New Territories Index is reported at 187.12 points, up 0.4% per week, and it has accumulated rise of 5.59% so far this year. However, the Kowloon District Index has fallen 0.53% to 160.25 points per week and accumulated rise of 4.23% so far this year.