More than six out of 10 people in Hong Kong believe property prices will decline this year, according to a Citibank survey.
The survey, based on phone interviews conducted by the University of Hong Kong among 500 people in the city in December, showed that 62 percent of the respondents expected home prices to fall in 2016, the highest percentage since the survey was first conducted in 2010, the Hong Kong Economic Journal reported.
By comparison, only 22 percent of the respondents thought property prices would fall in a survey conducted in the first quarter of last year.
The proportion of those holding a pessimistic view of the market surged to 46 percent in the third quarter, when stock prices plunged.
It is inevitable to see a downtrend in the property market given the government’s determination to provide more land to increase housing supply, Gale Well Group Ltd. chief executive Jacinto Tong said.
Tong warned of a potential 15 percent slide in the prices of smaller units and the segment that attracts mainland buyers also poses higher risks.
Independent economist Andy Kwan Cheuk-chiu forecast a 25 to 30 percent slump in property prices should bubbles in the market burst.
Meanwhile, CITIC-CLSA Securities equity strategist Christopher Wood said the Hong Kong interbank offered rate is likely to increase amid carry trade between the Hong Kong dollar and the US currency, while the government is unlikely to relax property curbs anytime soon.
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