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Confidence in property rebounding

Niki Law

Hong Kong's confidence in the property market has been revived by the recent influx of mainland tourists and the promises made in the trade pact with the mainland, a study released yesterday revealed.

The study by real estate consultant Land Power International found 68 per cent of the 1,073 people interviewed in the city believed property prices had bottomed out.

Only 25 per cent thought prices could go lower and about 35 per cent said they planned to buy a flat.

'We were surprised that under poor economic conditions, 35 per cent of people were still planning to buy a flat,' Land Power chairman Michael Choi Ngai-min said.

'I remember one year ago almost everyone thought that property prices would plunge. But after the influx of individual permit travellers the whole atmosphere of Hong Kong has improved. After Cepa and the travel relaxation, people have regained confidence in the market and in the future.'

Many developers had stopped offering discounts on flats.

The study also involved surveys in Shenzhen, Guangzhou and Shanghai.

About 53 per cent of the 902 people surveyed in Shenzhen, 49 per cent of the 837 interviewed in Guangzhou, and 29 per cent of the 786 people surveyed in Shanghai are planning to come to Hong Kong as individual travellers.

About 14 per cent of people from Shenzhen and Guangzhou, and 11 per cent in Shanghai said they would buy properties in Hong Kong.

Alex Tang Yee-man, president of the Society of Hong Kong Real Estate Agents, said people felt confident because they realised the central government was willing to do everything in its power to help Hong Kong.

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