Shih Wing-ching, founder and chairman of Central Plain Kong Group, told a forum that the property market would face some pressure early this year, with a drop of 1 or 2 percentage points in the first quarter. But the market will slowly recover as the rate cuts are confirmed. On the supply side, Shih Wing-ching said there should be less supply in the future. As developers accumulate more inventory, and new investment will be reduced, so developers can not control future supply and demand, there will be a shortage of demand.
On the mainland property market, he said, the central government has introduced a series of policies, the mainland’s first-tier cities have improved considerably, increased primary market trading, and secondary market prices have bottomed out. If the mainland’s policies are effective, they will also have a positive impact on the property market in Hong Kong.
The 2024 increase in primary market activity is also evidence that the market is starting to attract buyers, and Shih Wing-ching expects this trend to continue. However, the pressure on developers has not been completely removed.