Goldman Sachs raised its Hong Kong home price growth forecast from 12 percent to 15 percent, driven by better-than-expected performance in residential property prices and office rents so far this year.
The bank's forecasts for 2027 and 2028 remain unchanged at 7 percent and 4 percent growth, respectively, according to Goldman Sachs.
Goldman Sachs pointed out that the residential property prices have climbed 8 percent year-to-date, with new home sales volume increasing by 48 percent. Rent growth has been slower, rising only 1.2 percent year-to-date, which indicates a shift in demand from renting to buying.
In the office sector, Goldman Sachs lifted its rental growth forecast from flat to 3 percent, with a surge in the core Central district from 3 percent to 10 percent. The forecast for non-core districts remains flat year-on-year due to persistently high vacancy rates.
