HSBC survey reveals one-sixth of Hong Kong residents plan to buy property within five years

The latest survey conducted by HSBC Hong Kong indicates that one-sixth of respondents are considering purchasing property within the next five years. This finding is based on mid-year population and household statistics from the Census and Statistics Department, translating to over 300,000 households.

This insight is particularly significant in light of the government's earlier announcement of housing supply targets. Over the next decade, the market will see the introduction of 132,000 private housing units and 123,000 public housing units.

Among those considering a purchase, two-thirds are current property owners, while the remaining third are first-time home buyers. The survey highlights the continued popularity of property investment among Hong Kong residents. A substantial 72 percent of those looking to buy a second home cite investment and passive income as their primary motivations. Additionally, around 31 percent of first-time buyers are also driven by investment opportunities.

Confidence is higher among existing property owners, with 62 percent planning to acquire new property in the next two years. Conversely, over 60 percent of first-time buyers will base their decision to purchase on personal or family needs.

Sidney Massunaga, Managing Director of Retail Products for HSBC Hong Kong, emphasized the significance of mortgages, noting that with terms usually spanning 20 to 30 years, they represent a major commitment and a key asset for many customers.

The survey, which included a diverse group of Hong Kong residents, was conducted after the first interest rate cut in September and before the government's announcement on easing the maximum loan-to-value ratio for mortgages. The timing of the survey aligns with recent market conditions, and the second round of interest rate cuts in early November is expected to further boost the property market.