OVERALL TREND

Vision City Housing Price Index

HPI Trend Highlights

1) Drop in 2008

For both Vision City and overall Hong Kong housing price index, there is a small drop in 2008.

This can be attributed to the global financial crisis that caused economic downturn in Hong Kong.

The property market was hit hard as housing prices declined by 17% and transaction volume by 54%.

This is due to the worsening economic prospects restraining demand from prospective home buyers.

2) Drop in mid 2015 to early 2016

There has been a drop in the housing price index of whole Hong Kong and Vision City in the mid 2015 to early 2016.

Although, the drop is less pronounced in Vision City due to few number of transactions occurring during that period.

Regardless, the drop can be attributed to a reduced flow of money from the Mainland

as the government there intensified its crackdown on the rich.

3) Drop in mid 2018 to early 2019

There was another drop in the housing price index in the mid of 2018 to early 2019.

This is because of increased trade tensions between the US and China, increased interest rates in the US,

a cooling economy in China and volatility of the Hang Seng Index (Hui, 2019).

4) Overall trend

From 2007 to 2020, the general trend for the pricing index for both Vision City

and the whole of Hong Kong has been an upward trend.

This can be attributed to a number of reasons such as strong demand for property,

increasing number of mainland buyers, low nominal interest rates etc.

However there have been a couple of cases of the price indexing falling over the past decade.