Less Hong Kongers expecting home prices to rise
The number of respondents forecasting home prices to grow fell to 36% from 42%.
The proportion of locals expecting residential property prices to rise fell to 36% from 42% in Q1, according to Citibank’s Q2 2019 Residential Property Ownership Survey, indicating a weakened outlook on the housing market.
In comparison, the percentage of respondents who expected home prices to fall was up from 24% in Q1 to 28% in Q2.
This coincides with earlier expectations that home prices may fall 15% and by as much as 25% by year end as escalating trade tensions deal a heavy blow to Chinese buying sentiment.
The survey also found that over 70% of respondents felt that it is a bad or terrible time to purchase a home now. Over one in four (27%) took a neutral stand, which reflects a wait-and-see attitude amongst potential home buyers.
That said, 25% of respondents expressed a very or rather strong interest in buying a property in Q2, still representing a high percentage in recent years. “Nearly a quarter of the respondents aged between 21 and 29 have the same interest,” the researchers noted. Approximately 28% took a neutral stand, whilst 47% were uninterested.