Hong Kong property prices are expected to rise by 10 percent to 15 percent next year, amid a strong recovery momentum, says the chief executive officer of Midland (1200) (Residential), Dave Ma Tai-yeung.
Fueled by favorable factors such as interest rate cuts, the wealth effect, economic growth, policy benefits, rising rents, and reduced inventory, the property market will see both price and volume increases next year, said Ma.
New residential property transactions are expected to increase by 5 percent year-on-year to approximately 21,000 units next year. And the secondary property transactions are expected to reach approximately 50,000 units, an increase of 9 percent year-on-year.
This year, the new residential property transactions are expected to perform particularly well, with a record high of 20,000 units for the year. The transaction value is expected to rise by over 9 percent to HK$200 billion, a four-year high.
Ma noted that supported by the policy of reducing stamp duty, the effect of small-sized apartments (properties priced at HK$10 million or less) on the property market is very obvious, and it has triggered a chain of property swaps, leading to a positive development in the overall property market.
Rents and property prices rose in tandem this year, increasing by around 2.92 percent in the first 11 months, marking the third consecutive year of increases. Rents are projected to rise by 5 percent next year.
