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The weaken property share prices lead to the adjustment of property market
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The weaken property share prices lead to the adjustment of property market

 

Damon Ho

2024年4月13日

One month after the withdrawal of the cooling measures, the rebound of the transaction volume of first-hand properties was quite substantial, and the price per square foot did not rise but fell. In terms of the stock market, the stock price of real estate stocks had increased for only two weeks after the withdrawal, and then it began to fall again. If the stock market is the forerunner, the property market will follow its footsteps stocks in the next two months. Therefore, the property market is in danger of falling again.

After the withdrawal of the cooling measures at the end of February, real estate agents took the lead in forecasting that the property market will rebound soon. Midland property is the only listed real estate agency stock in Hong Kong, and its share price rose from $0.6 to $1.2 within two weeks after the withdrawal, but since then it has slowly fallen to 0.86 per share so far, and the price fluctuation is obvious. The smart money in the market does not seem to believe that the withdrawal of cooling measures will alter the nature of the property market. At the beginning of 2019, Midland's share price was close to HKD 2, and the current share price was HKD 0.86, which meant that it had dropped 57%.

Furthermore, Cheung Kong's the new flat of “Blue Coast” Phase 1 and Phase 2 almost sold out, and the selling price was under market value. Its share price rebounded sharply and then fell again, and its share price rose from $35 to $38.5 within the first two weeks of March, and then fell to the current price of $31.85. This sharp drop indicated that the investors were deeply concerned about the weakening property market.

In addition to agency and real estate stocks, Link Real Estate Investment trust as a REITs, its share price performance was even poorer. Since March, its share price has been declining 17% from $39 to $32.2 at present. The share price of real estate-related stocks being reduced after the removal of cooling measures is clear. Reviewing of the property stocks’ performance, the property market will complete this short-term rebound in about two months. Then, the transaction volume will decrease significantly, and there is a great chance that property prices will drop further at the bottom.

The weaken property share prices lead to the adjustment of property market
1. Blue-chip housing estates VALUATION ROSED
2024-04-14 00:02

Major housing estates in Hong Kong saw turnarounds after 10 consecutive months of decline, with gains ranging from 0.46 to 4.77 percent within a month after the government removed restrictions.

Among 20 blue-chip housing estates, the valuation of 14 projects increased in March, three remained unchanged, and only three recorded slight decreases, according to data from a property valuation platform of Hang Seng Bank.

2. The Dow fell 475 points
2024-04-14 13:15

The Dow fell 475 points, or 1.2%, after dropping more than 500 points at the day’s lows. The S&P 500 declined 1.5% and the Nasdaq Composite lost 1.6%. All three major indexes ended the week lower.

The US and Israel are on alert for a potential attack by Iran or its proxies, the White House said Friday, after an Israeli strike in Damascus last week.

Oil prices spiked on Friday on fears of intensifying regional tensions stoked by the war in Gaza. Brent crude futures, the international benchmark for oil, settled at $90.45 a barrel, retreating after touching its highest level since October. West Texas Intermediate crude futures, the US benchmark, climbed to $85.66 a barrel.

3. China's bank kept interest rate unchanged
2024-04-15 11:49

China's central bank on Monday left a key policy interest rate unchanged as widely expected when rolling over maturing medium-term loans and drained some cash from the banking system through the bond instrument. 

Keeping the medium-term lending facility (MLF) rate steady underscores the central bank's intention to maintain currency stability amid a shaky economic recovery and push back on market expectations around the timing of a first U.S.

5. HK fell out top 10 busiest container portsports
2024-04-19 20:46

Hong Kong fell out of the top 10 busiest container ports globally last year, ranking 11th for the first time, Alphaliner reported.

Hong Kong saw a 14.1% YoY decline in container traffic to 14.34 million twenty-foot equivalent units (TEUs) last year.

Dubai, which saw a 3.6% increase in container traffic, surpassed Hong Kong.

Meanwhile, Shanghai and Singapore topped the list with 49.16 million and 39.01 million TEUs recorded, respectively.

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