Date
23 August 2017
Half of respondents in a survey by the Chinese University of Hong Kong expect a 5 to 10 percent increase in home prices. Photo: HKEJ
Half of respondents in a survey by the Chinese University of Hong Kong expect a 5 to 10 percent increase in home prices. Photo: HKEJ

Three in 10 people expect increase in HK home pices

More than three in 10 people expect Hong Kong home prices to rise in the next 12 months, up sharply from from September last year, the Hong Kong Economic Journal reported Thursday.

About 37.3 percent of respondents polled by the Chinese University of Hong Kong see an uptrend in prices, with half saying they expect a 5 to 10 percent increase.

The figures were the highest among four similar surveys done in the past two years, indicating a potential upside in the property market.

Meanwhile, the percentage of respondents who expect prices to fall slipped to 11 percent from 28.9 percent previously.

Nine in 10 of the 738 people in the random sample said present home prices are too high, up 1.2 percentage point from a survey in September last year.

Market veterans warned about movement in interest rates and the impact of new supply on prices of residential properties which could constrain long-term price increases, the report said, citing Alva To, managing director for Hong Kong of global property services provider DTZ.

The Centa-City Leading Index, which gauges property prices in the secondary market, hit a record earlier this month, with a cumulative gain of 6 percent in the past three months.

Monthly transactions rose to 9,400 in July, the fifth straight month of increase and the highest in almost six months.

Both sets of figures showed recovering appetite in the property market but To said any changes in the political environment could affect home prices in the future.

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VW/AC/RA

Freelance journalist

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