17 December 2014 - Joshua Han Miller, CEO of OKAY.com, was recently interviewed by Yahoo Finance about his views on the current property market. He expects market activity to continue to increase in the short to intermediate term amidst fluctuations.
“The end of the US bond purchase program is a sign of economic stability and recovery. We’ve seen volumes increase in HK, with average monthly sales volumes in 2014 up 23% versus 2013, accelerating in 3Q 2014 to 58% over 2013. On a value (consideration basis), these numbers are even more indicative of a recovery, with 2014 and 3Q 2014 up 36% and 89% over the average monthly purchases (in HK$) in 2013, respectively“, Joshua stated in the interview.
He stressed that the market still has room for recovery, with monthly volumes in 2014 still 36% below the 10-year average over 2004-2013, and 13% below 2003 during SARS. As such, he expects market activity (volumes) to continue to increase amidst monthly fluctuations.
Asked about advice for potential property buyers under the pressure of an expected interest rate rise, he suggested investors look longer term and purchase ahead of a continued recovery.
“Don’t focus too much on short-term trends. The Media often reports on a single week/month’s activity (or even a weekend’s activity) as indicative of a trend. Look longer term because real estate cycles are measured in multiple years, not single weeks. If you’re comfortable investing, don’t be scared by a single month’s activity (up or down), and plan for a long term investment.” He added, “The biggest winners in real estate are the long term investors.”
Joshua is generally optimistic about the property market, given that the threat posed by the forecasted interest rate rise is limited. “Only if interest rates become high, will the markets react negatively. This will only happen if the Fed / global markets perceive economic overheating, which may not happen and is a long way away if it does. The first stage of a recovery in interest rates is a result of increased economic activity and consumer confidence, so is almost always accompanied by a rise in the real estate market. ” he explained.
He added that purchase inquires received by OKAY.com have increased over 60% in the last 5 months versus the first 5 months of the year, with almost 100% business growth in 2014, both from continued activity in leasing and in sales. He believed OKAY.com’s highly up-to-date database and professional agents motivated by a unique reward scheme greatly contributed in gaining client confidence and achieving the encouraging growth of business.
For the full article in Chinese, click here.
