S&P Global Ratings said on Wednesday that Hong Kong's property market is estimated to see a home price hike of 3 to 5 percent for the remainder of this year, bringing the full-year price growth to 8 to 10 percent.
The agency said that the increase in home prices will be softened to 0 percent to 3 percent in 2027.
S&P predicted a phase of moderate recovery in Hong Kong's housing market over the next two years, with primary home transaction volume to reach 21,000 units this year.
As pent-up demand is gradually sated, transactions will likely ease to 18,000 in 2027, it added.
Supply of new private homes over the next three to four years will be adequate at around 101,000 units, while subsidized housing supply is on the rise, indicating that the city's traditional supply-demand imbalances likely won't be as pronounced as that of the past, S&P noted.
Due to the rise in housing demands, the city also sees potential for heated bidding on land sales, with the winning bids at a noticeable premium over the estimated value over the past few months, the rating agency said.
It added that any purchases of land at inflated prices could be a long-term risk, while rising investor flows could be a catalyst for upside surprise in price appreciation.
𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗧𝗵𝗲 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗔𝗽𝗽 ↓
