The current wave of price rise in
property market is different from what happened in 1997. At that time, China's
economy was much smaller than now and it's influence on Hong Kong was relatively
weaker than the power of West. Also, the property bubble in 1997 was covering
the whole Hong Kong that even the flats in Tuen Mun could fetch $6000 per sq.ft.
Now, we have two markets - high end and users.
From latest statistics of monthly income and current interest rates, the average ratio of mortgage to income is still within safe limit. With the huge increase of wealth in China cities, especially those in South China, Hong Kong being a regional hub and free port for money flow has become the destination of funds from motherland. Basically, our own wealth has also built up since SARs. All these elements are exactly the right constituents for a boom market.
When property becomes the few easily accessible assets, people with reasonable saving will start pay attention on how to join the party. Now, it is just the start of show time and we still have a long way to the end.
From latest statistics of monthly income and current interest rates, the average ratio of mortgage to income is still within safe limit. With the huge increase of wealth in China cities, especially those in South China, Hong Kong being a regional hub and free port for money flow has become the destination of funds from motherland. Basically, our own wealth has also built up since SARs. All these elements are exactly the right constituents for a boom market.
When property becomes the few easily accessible assets, people with reasonable saving will start pay attention on how to join the party. Now, it is just the start of show time and we still have a long way to the end.
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