WITH signs of improving Sino-British relations and continual efforts towards a relaxation of the Government's 70 per cent mortgage ceiling, Hongkong property analysts agree that the property market is set for a surge of activity.
So where are tomorrow's hot spots? And which areas have exhausted their potential? At present, there are some principal factors which will influence Hongkong's property market during the next three to four years.
For instance, property analysts agree that Mr Li Ka-shing's proposed $15-billion light railway, linking rapidly-developing Ma On Shan and Cheung Sha Wan in Central Kowloon, will boost property prices by up to 10 per cent in surrounding districts of the New Territories.
''Even with all the present transportation problems out there, there is still a great demand for property in the Ma On Shan, Sha Tin and Tai Wai districts. With a railway system we could easily see a five to 10 per cent appreciation in property prices,''said Ms Julie Baldwin, Colliers Jardine's valuation and consultancy director.
Ms Baldwin emphasised the importance of convenient transportation by referring to the example of Tate's Cairn Tunnel.
''Constructed a couple of years ago, Tate's Cairn Tunnel provided relief for congested traffic conditions from Sha Tin to Kowloon - and developments at Sha Tin definitely saw substantial increases in property prices. But this system, although mitigating some congestion, still forced many residents to use buses, which are much less convenient, uncomfortable and far slower than a light-rail system would be,'' said Ms Baldwin.