OpinionTiming in the market can be hit or myth for buyers

Is it the right time to buy? A reader raised this question when he read the news that Frederick Ma Si-hang, a former secretary for commerce and economic development, recently bought a unit at Pacific View in Tai Tam for HK$35 million, about a year after he sold his flat in Magazine Gap Road in Mid-Levels.

Ma's purchase lifted the reader's hopes for the market outlook, partly because he believes Ma is recognised as a veteran investor.

More importantly, the reader is similar to many Hong Kong home seekers, who have an irrepressible urge to own a home. The urge, I believe, comes from certain myths about home ownership. One is that if you rent, you are throwing money away. Another myth is that a mortgage is a form of enforced saving.

Of course, history tells us that buying a home in Hong Kong has always been a path to wealth. So, any changes in price trends and veteran investors' buying decisions will pique the interest of potential buyers.

Renting doesn't give you a good feeling. Last week, a friend looked for a rental unit. Without any recreational facilities and on a noisy street, a unit with 357 square feet of saleable area in an ancient building in Wan Chai was being offered for an asking rent of between HK$13,000 and HK$14,000 a month. For a two-bedroom flat with a better environment, such as in Kornhill in Quarry Bay, one would have to pay HK$15,500 to HK$18,000 a month, according to the latest transactions tracked by Centaline Property Agency between April and early May.

From the flat owner's view, the rent is not too high. The latest transactions in Kornhill, according to Centaline, were between HK$5.36 million and HK$5.65 million, so the rental yield of the Kornhill unit is just 3.47 per cent on the basis of a monthly rent of HK$15,500 and selling price of HK$5.35 million.