Residential prices to ‘bottom out’ in Q1 2023
This is due to a positive economic outlook.
The residential prices in Hong Kong are expected to “bottom out” in the first quarter of the year due to a more optimistic economic outlook and improved social atmosphere, according to a report by CBRE.
CBRE said Hong Kong’s economy is expected to turn around following a contraction in 2022 after the reopening of the hong Kong-Mainland China border. This could also improve employment this year.
It also saw a reversal in market sentiment as a milder rate hike is anticipated, with residential buyers becoming more bullish, whilst sellers are not seen to dispose of their units at a lower price.
“After a considerable correction in 2022, we incline to view that the residential market is in the middle of a turning point,” CBRE said.
A decline in residential prices to decelerate or pause is expected following the 3.3% month-on-month drop in November, it said.
Hong Kong saw a surge in units for sale in the second half of 2022 due to the immigration wave which contributed to downward pressure on residential prices. The majority of the units were bought by “opportunistic homebuyers.”