Date
18 October 2018
REA Group chief economist Nerida Conisbee (inset) sees the possibility of a property market correction in Hong Kong in the near term. Photos: CNSA, Internet
REA Group chief economist Nerida Conisbee (inset) sees the possibility of a property market correction in Hong Kong in the near term. Photos: CNSA, Internet

More than 1 in 4 HK people gave up home ownership dream: survey

With property prices rising continually, worsening the housing affordability situation in the city, many Hongkongers have simply given up on the dream of having an apartment of their own, a survey shows.

According to a study by REA Group, a global online real-estate advertising company, more than one in four Hong Kong residents feel they can never hope to buy a home in their lifetime.

Unveiling the results of the study, the Australia-based firm said Tuesday that 27 percent of respondents in a poll were convinced that they would never be able to enjoy home ownership as prices are simply beyond their reach.

Another 16 percent said they have no plan to buy a property in Hong Kong at all.

Among unmarried respondents, 55 percent said high property prices had influenced their marriage plans, with some of them admitting that they cannot get married until the prices are more affordable, the Hong Kong Economic Journal reports.

For its survey, REA Group sent out an online questionnaire to Hong Kong citizens between Jan. 29 and Feb. 10 and received 1,003 responses.

The survey found that only five percent of the total respondents considered current home prices “reasonable”, while the rest believed they are “excessively high”.

Still, one in five respondents said they would consider buying a property in Hong Kong in the next 12 months, with a median budget of over HK$6 million.

Among those who intend to buy or will buy a property in the city, 48 percent said they would buy “nano flats” as long as prices are reasonable, for purposes of self-occupation or for investment.

Asked how the Hong Kong property market will perform in the future, 69 percent of the respondents said they expect home prices to rise further, by an average 9.8 percent in the coming six months.

According to the government’s Rating and Valuation Department, home prices in Hong Kong rose for the 22nd month in a row in January.

Nerida Conisbee, REA Group’s chief economist, said she sees the possibility of a property market correction in Hong Kong in the near term.

Among other comments, she noted that while a number of new graduates in the city have set home purchase as one of their major life goals, they have turned cautious due to unaffordable prices.

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TL/JC/RC

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