Some fear property will trace stock dive, others disagree
With the Hang Seng Index down more than 50 per cent from its record high of 31,958 points almost exactly a year ago, there are concerns the property market retreat will continue until prices are also down by a similar margin.
Some analysts who expressed such concerns say that the property cycle generally lags events on the stock market by six to nine months.
However, contrarians say that with supply taps turned low and developers adopting more cautious sales strategies, the big drop in prices that happened a decade ago will not be repeated.
As of September 30, total new supply in the pipeline for the next five years - comprising completed but unsold units and those under construction that are yet to be launched for presale - was at a record low of 62,000 units, official data shows.
MTR Corp's decision to shelve the tender for phase four of Lohas Park in Tseung Kwan O after the policy address by Chief Executive Donald Tsang Yam-kuen on Wednesday last week will further reduce projected supply.