Is it really a Terrible Time to Buy a Home in Hong Kong ?
October 02, 2019 - Hong Kong
Hong Kong home prices will fall in the next 12 months, more than half of respondents to a Citibank Hong Kong survey of residential property ownership.
The results of the Citi survey come just two weeks after Cushman & Wakefield reported that home transaction volumes fell by 45% in July and August compared with April and May, and by 19% compared with the same two months last year.
According to Citibank, Hong Kong residents predicting a drop in home prices doubled to 56% from 28% last quarter.
“The results show that many local citizens are expecting a continuous fall in property prices, but the overall interest in property ownership sees no material change despite their views on the property market, in which respondents aged under 44 still express a relatively stronger interest in buying homes,” said Josephine Lee, Head of Retail Bank, Citi Hong Kong.
While 26% of respondents said that prices would remain flat over the next twelve months, a more optimistic 18% expect home prices to rise over the same period [...]
As protestors clash with police each weekend, almost two-thirds of respondents said that they thought now was a terrible time to buy a home, when asked by Citi to take into consideration their current standard of living and family finances.
Only 3% of respondents felt that now is a good time to buy, undeterred by the sight of almost 10% of storefronts in Causeway Bay standing empty, while 29% of respondents were neutral about whether the present was an auspicious moment to invest in a home.
20% of respondents said they retained a strong interest in purchasing a property, a five percentage point drop from last quarter’s figure.
Just over half said buying a home did not interest them, while 29% remained neutral.
The shift in buyer outlook comes as home prices have declined for three straight months after reaching a peak in May.
Citibank commissioned The University of Hong Kong Social Sciences Research Centre for the survey, interviewing over 500 Hong Kong respondents by phone in August.
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