Hong Kong’s residential property prices may rebound slightly in the second quarter of this year owing to the recent stabilization in interbank interest rates and high demand in the market, a Bloomberg Intelligence analyst said.
A growing number of high-income families and about 53,000 potential homebuyers in the market will support property prices this quarter after a weak performance in the previous quarter, a Hong Kong Economic Journal report quoted Patrick Wong, senior Asia real estate analyst at Bloomberg Intelligence, as saying in a media briefing Wednesday.
However, Wong warned that there remain downside risks in the property market, including potential interest rate hikes and increasing home supply later this year.
Meanwhile, James Lau, acting secretary for financial services and the treasury, said it is still early to say the city’s property prices have entered a downtrend, given an imbalance in supply and demand.
Lau’s remarks came in response to lawmakers’ queries about the potential removal of certain property curbs.
He said the government has to look at a set of factors including risks facing lenders, the economic environment, affordability for homebuyers, changes in property prices and transaction volume, and the supply of property, among others, in determining whether the market has entered a downward cycle.
The Hong Kong Monetary Authority will keep a close eye on market conditions, while the Hong Kong Mortgage Corp. Ltd. has no plan to amend the threshold for mortgage insurance, Lau said.
– Contact us at [email protected]