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City Beat | How is Hong Kong’s property market affected by the protest crisis and how much can youth anger be linked to home ownership?
- Some complain that recent protests are worse for business than the Occupy movement, yet suggest half-jokingly that crisis might rein in property prices
- But analysts are of the view that a big property market plunge is unlikely. The reason is simple – not enough supply
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Hong Kong’s economy is stagnating, if it has not entered recession yet.
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Official figures show the city was already in negative growth for the second quarter over the previous three-month period, with an increase of just 0.6 per cent. The remaining two quarters will be worse, according to government assessments.
Naturally, many are linking this to the past two months of massive, anti-government protests, of which no end is in sight. But, to be more accurate, there are multiple other factors contributing to this economic downturn, especially the unpredictable decisions from US President Donald Trump on his administration’s trade talks with China.
At the end of the day, given the intensifying internal troubles and external uncertainties, it boils down to something fundamental: confidence in the city’s present situation and future.
History has proved that it’s not about prices alone; confidence is critical because it brings in business
Various businesses are complaining that they are actually facing an impact that is far worse than that of the Occupy movement back in 2014, when protesters blocked roads for 79 straight days.
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