RESIDENTIAL PROPERTY | Staff Reporter, Hong Kong

Home prices predicted to surge 15% in the next 2 years: JLL

Owner-occupiers' demand keep going up.

Hong Kong residential housing prices continue to waft skywards, despite the government’s efforts to keep the property balloon closer to earth. 

JLL expects housing prices to grow 15% in the coming 30 months given strong demand from owner-occupiers and about half of all households still with the financial strength to participate in the secondary market. If the government’s cooling measures remain in place, the deadlock in the secondary market will funnel home seekers into primary market, further lifting up prices.

Market watchers have seen no slowdown in the upward trend, but have started looking for the top of the market.

Here's more from JLL:

Despite the government pulling on the regulatory tether, housing prices have surged by 20% over the past year and are now back at all-time highs.

Yet, rising interest rates, geopolitical risks, and increasing supply are adding to fears that the market may crash back down to earth.

Demand from owner-occupiers, however, remains strong and while affordability has deteriorated, we estimate that at least half of all households still have the financial strength to participate in the private housing market.

Moreover, the deadlock in the secondary market continues to funnel buyers into the primary market, which in turn, further supports prices.

We believe that prices may potentially increase a further 15% over the next two and a half years, and the top of the market is still higher in the clouds.

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