RESIDENTIAL PROPERTY | Staff Reporter, Hong Kong

Millennials are jostling for space in Hong Kong's property ladder

A third (34%) of mortgage applicants in 2H2017 were millennials born from 1980 to 1994.

As property prices in the world’s least affordable housing market continue to trend upwards, a growing number of millennials are diving early into Hong Kong’s red hot property market and locking in purchases before home prices could climb even further.

Also read: Home ownership plunges to below 50% in 2017 as prices skyrocket

Although 40% of mortgage inquiry volumes in the second half of 2017 came from Generation X (born 1965 to 1979), more than a third (34%) originated from those born from the millennial age group or those born between 1980 to 1994, according to a report from consumer credit reporting firm TransUnion.

Also read: Banks scrap fixed-rate mortgages as interbank lending rates surge

“Despite the fact that the average home is 12% costlier than it was in 2015, this represents a significant shift towards the younger end of the scale, when you consider that only two years ago the distribution of inquiries was 28% to Millennials, 42% to Generation X, and 28% to Baby Boomers,” the report added.

Developer Sun Hung Kai Properties’ Wings At Sea II project at Lohas Park in Tseung Kwan O witnessed around 100 units snapped up by eager buyers, half of which were millennials, Sammy Po Siu-ming, chief executive of Midland Realty’s residential division told South China Morning Post.

Amidst a sustained trend in home prices, the local mortgage industry is set to benefit even further from the growth momentum led by the millennial age group, expected TransUnion.

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