(By Yan Lunle)
The recent property trading has fallen sharply due to the effect of the pneumonia epidemic. Tong Man-leung, the Vice Chairman and Chief Executive Officer of Gale Well Group, frankly said at a radio event yesterday that Hong Kong is unlikely to see a property market booming this year. And he expected the property prices to fall by 7% to 8% in the first half of the year. He said the property market would return to the stable if the epidemic improves, and purchasing powers are rereleased in the second half-year. He believes that property prices falling within 10% throughout the year is an excellent performance, and not recommended the public to enter the market now because of the increasing external uncertainties this year.
Tong Man-leung pointed out in a column yesterday that many insiders had predicted a booming market after the Lunar New Year in early when everyone was not wary of new pneumonia. He agreed that the transaction volume would increase after the holiday, but property prices would still fall. This prediction has become extravagant currently because pneumonia hits Hong Kong. The sales performance will not be satisfactory if real estate developers do not reduce prices significantly. But the second-hand property market may get cold, and property prices would sharply fall if significantly price cuts happen, what is, the booming market will not appear.
The Government suggests a relaxing conversion period to save the economy.
The mainland government has adopted active anti-epidemic measures, including "closing the city" of Wuhan. Tong Man-leung estimates that new pneumonia will decrease within one or two months. He stated in the column: "When the epidemic eases, the Hong Kong Government adopts some policies to save the economy. Of course, it is not as simple as sending one or two hundred HKD, but to relax conversion period measures. So that citizens can use their reserves to save themselves. If the measures go in time, then a better late than never booming market may still appear.”
