Buyers Strike While Hong Kong Property Market Booms
Undervalued listings become buyers' "hidden gems" in the investment market
In recent years, Hong Kong's property market has been soaring, with prices rising at an alarming rate. For buyers, the high prices present a significant challenge. How can they purchase properties at such high valuations while still earning a profit? This calls for buyers to exercise caution when selecting properties. In this article, we examine the trend of buyers striking while the property market is booming.
First and foremost, buyers need to consider the issue of property valuation when selecting a property. Generally, property valuations are valid for three months. Therefore, obtaining a property valuation during an upswing in the market and completing the mortgage approval process within the validity period can help avoid undervaluation risks resulting from market fluctuations. For buyers looking to purchase properties at high valuations, this is an opportunity not to be missed.
Secondly, undervaluation poses a significant challenge for both first-time buyers and existing homeowners. However, investors and owner-occupiers often seek to enter the market at a "low tide," that is, buying properties at prices lower than market value, or striking when the market is on a downward trend. For these buyers, undervalued listings may present an opportunity, as they can become the "hidden gems" in the market. Thus, listings undervalued in the investment market become a viable option for buyers.
Lastly, it is crucial to note that online valuations provided by banks differ from actual property valuations, and buyers must be cautious when selecting properties. Nonetheless, buyers can conduct an online valuation for their preferred properties to prepare for future bargaining and mortgage budgeting. Therefore, when searching for properties, buyers should take note of undervalued listings in various areas and find the most suitable property for themselves.
In conclusion, buyers striking while the property market is booming requires a cautious approach. Completing the mortgage approval process within the validity period of property valuations can help buyers avoid the risk of undervaluation resulting from market fluctuations. Moreover, buyers can consider investing in undervalued listings to find "hidden gems" in the market and earn higher returns on investment. Nevertheless, buyers must be aware of the discrepancy between online valuations and actual property valuations and conduct sufficient research and preparation to find the most suitable property for themselves. Only then can they find the right property at high valuations and earn greater investment returns.