Since the government's full withdrawal of spicy measures, the market sentiment has changed quickly, buyers' confidence has been increasing, and the number of new buyers has also rebounded significantly. Although the atmosphere has been warming up, but the developers must clear the pile-up of the inventories in near future, so they inevitably set the new flats’ selling price, which are competitive in the second -hand property market in same district, to attract the potential buyers. Obviously, the immediate effect of scraping the spicy measures is only to raise the sales volume but not the price.
On the day of the announcement of the withdrawal of the spicy measures, the stock prices of property development and agency firm rebounded immediately, but its rising had narrowed before the trading hours ended. In the past few days, the Hang Seng Index had risen above 16000 points, and yet it was unable to reach 17000 points. The stocks’ prices of leading real estate stocks rose slightly, and they did not last long. The stock market's performance reflected the financial industry's lack of confidence to the effect of new policy on the property stocks. It also doubted that the property stocks’ profits will not be significantly changed due the increase in transaction volume.
The Hang Seng Index surged from a recent low of 14,900 points on January 22, to the highest level of 16,600 points on February 
28. Until now, the index is in a state of stagnation. If the index does not pass through the 17000 points, it is overly confident to predict that the property price will return to the upward trend.
In response to the developers' low-priced approach, the landlords of second-hand properties are forced to reduce their asking prices or even to the prices that are lowered to the costing. To pessimistic owners, it may be the last chance for them to sell their properties. For optimistic investors, the positive outcome of the withdrawal of spicy measures is emerging, they are cautious to return to the property investment market.
Will the property market rise again? It must examine the fundamental local economy. Hong Kong fiscal deficit will last for years. Furthermore, the new trend of consumption pattern in northern China has a negative impact on the local retailing and food & Beverage industries. Indeed, the prolonged weakness of the stock market and the fading foreign direct investment have also caused damage to the economy. It is no doubt that the local business environment is in dire situation. Even if you are optimistic about the market outlook, the investment focus should also be focused on small and medium-sized of residential units. Most importantly, it is better to ignore the industrial, commercial, and shops properties.
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