Above: Many homeowners are taking the attitude that they will not be selling unless the price is good.

Home deals in the primary and secondary market are expected to drop further following DonaldTrump’s election victory, but it might not be all bad news, industry experts say.

The situation of Trump winning the American presidency is similar to Brexit, Centaline PropertyAgency founder Shih Wing-ching said yesterday, as the US Federal Reserve might delay raising interest rates – therefore prompting capital to continue flowing into the local and Asia property market.

Above: The situation of Trump winning the American presidency is similar to Brexit

Shih said the home market was already in a “wait-and-see” mode after introduction of the latest cooling measures last week, and he expects prices to fall 3 to 5 percent until starting to recover in the second quarter next year.

“Volatility in the market can be expected, and home deals in both the primary and secondary market will go down in the short term following the latest cooling measures and Trump’s presidency,” said Midland Realty chief analyst Buggle Lau Ka-fai.

“Performance of the local home market in the mid-to-long term will depend on expectations over the US interest rate, and whether Trump’s policies, such as levying taxes on Chinese exports, will affect the mainland’s economy,” Lau added.

However, Lau noted that an expectation of further yuan depreciation may lead to more capital outflow from the mainland into the SAR’s luxury home and commercial property markets.”Due to uncertainties and volatility in the global market, capital might flow towards risk-averse assets, and the property market will be one of those options,” said Knight Frank senior director, Thomas Lam Ho-man.

Above: US Federal Reserve might delay raising interest rates therefore prompting capital to continue flowing into the local and Asia property market.

Terence Chong Tai-leung, executive director of the Institute of Global Economics and Finance at Chinese University of Hong Kong, believes Trump will adopt a pragmatic approach once in office.

Chong said the major factor affecting the local market remains the latest cooling measures, which have caused secondary home deals to “freeze.”

“Many homeowners are taking the attitude that they will not be selling unless the price is good, and as a result, many are looking to rent out their flats instead,” said Centaline branch manager Buddy Ching.

Above: Republican candidate Donald Trump pulled off one of the most stunning upsets in US election history by trouncing market favorite Hillary Clinton to win the White House.

Source: The Standard