Residential property prices to rebound by 5%-8% in 2023
S&P Global cited China’s reopening as one of the reasons for its revival.
After correcting by about 16% in 2022, residential property prices in Hong Kong will rebound by 5% to 8% in 2023.
S&P Global added that primary residential property transaction volume would increase to 15,000-17,000 units this year from 10,315 units in 2022.
S&P Global said residential property prices would slowly revive in 2023 due to the removal of COVID restrictions, including the reopening of mainland China's borders, which could lift Hong Kong homebuyers' confidence on the back of an improved economic outlook.
S&P Global, however, said developers might resort to further price cuts to boost their sales if the homebuying demand turns weak due to deteriorating affordability caused by elevated interest rates.
The report advised developers who have expanded their rating headroom over the past few years to continue managing their investments and debt levels prudently to maintain stable credit profiles.