Generally speaking, economic recovery will bring about an increase in the purchasing power of the people. As many people's main purchase and investment objects are real estate, the purchasing power will increase accordingly.
With the gradual recovery of the Hong Kong economy, the unemployment situation has continued to improve. The latest data released on August 18 showed that the seasonally adjusted unemployment rate fell from 5.5% from April to June 2021 to 5.0% from May to July, the fifth consecutive month of decline. At the same time, underemployment The rate also dropped from 2.5% to 2.4%.
In terms of the number of unemployed persons, the number of unemployed persons dropped from 213,100 from April to June this year to 198,400 from May to July, a decrease of approximately 14,700. During the same period, the number of underemployed persons also dropped from 96,000 to 92,300, a decrease of approximately 3,700.
It is reported that the unemployment rate (not seasonally adjusted) and underemployment rate of most major economic sectors in Hong Kong have both declined. In terms of the unemployment rate, the construction industry and retail, accommodation and catering services, as well as the arts, entertainment and recreational activities have relatively significant declines. As for the underemployment rate, the decline was mainly seen in the transportation industry.
From an industry perspective, the unemployment rate of most economic industries fell from May to July this year compared with the previous three months, but the industries that benefited from mainland tourists in the past were still the hardest hit. Among them, the unemployment rate in consumer and tourism-related industries (ie, retail, accommodation and catering services) fell by 0.9 percentage points to 7.6%, of which the unemployment rate in catering services activities fell by 1.4 percentage points to 8.6%. At the same time, the unemployment rate of the construction industry and the arts, entertainment and recreational activities industry also recorded a significant drop.
In addition, with the economic recovery, Hong Kong's second-hand property prices have repeatedly hit record highs. The Central Plains City Leading Index CCL, which reflects the overall second-hand property prices, was last reported at 191.34 points, up 0.65% weekly, setting a record high.
The stock market has been relatively volatile recently, and many investors have suffered losses. The property market sentiment has turned to wait and see. Last month, the volume of first-hand and second-hand transactions fell by about 30%, but property prices have not been adjusted.
In addition, the recent stabilization of the economy and the decline in the unemployment rate have had a positive effect on the property market. In recent months, the property market has continued to flourish, and the epidemic has stabilized, which is beneficial to buyers' desire to enter the market. The current property prices are performing better than expected, and it is expected that property prices will peak in the third quarter.