Confidence in property market rises slightly

Business | Stella Zhai 10 Dec 2019

Homebuyers' confidence in Hong Kong saw a slight boost with fewer people expecting further price drops, while over half of respondents said it is presently a bad time to purchase a home, according to Citibank's residential property ownership survey for this year's last quarter.

The survey interviewed over 500 local respondents in October and found that 46 percent of them expected home prices to fall in the next 12 months, a sharp decline of 10 percentage points from the previous quarter, when social unrest had escalated.

However, 60 percent of the respondents still did not consider it a good time to buy a home, an 8 percent decrease from the previous quarter. Only 5 percent of respondents considered the present a good time to purchase a home.

Meanwhile, 57 percent of the respondents were uninterested in purchasing a property, with the percentage continuing to rise since the year's first quarter. Homebuyers maintained a wait-and-see attitude towards the property market, Citibank said.

Though the survey shows confidence has slightly increased, the market has witnessed a muted start to this month, with new projects failing to sell out and the secondary market remaining lackluster.

Meanwhile, in the primary market, a would-be buyer for a 151-square-foot flat at AVA228 in Sham Shui Po forfeited a deposit of HK$420,000, after backing out of a deal worth HK$3.55 million.

In the secondary market, a 282-sq-ft apartment at Tak Bo Garden in Kowloon Bay changed hands for HK$5.18 million, or HK$18,369 per sq ft, roughly 10 percent lower than the peak price for the project last year.

At Fanling Town Centre, a transaction for the project was expected to hit a low this year at HK$4.35 million or HK$11,569 per sq ft, down from the asking price of HK$4.5 million.

Tseung Kwan O meanwhile, has recorded 20 transactions so far this month, compared with 47 deals in the previous month. Among them, a 363-sq-ft unit at Metro City went for HK$6.36 million, or HK$17,521 per sq ft. The seller had bought the unit for HK$1.68 million in 2007.

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