Estate agents bullish on property prices

Real estate agencies are optimistic about property prices this year, but admit the number of transactions will likely fall. Ricacorp Properties expects prices will rise at least 10 per cent in 2011 because the fundamentals that support the market are intact, despite government measures last year to cool the market. But the agency believes total sales volume for the primary and secondary markets will fall 24 per cent to about 9,000 deals per month. Midland Realty believes the market has gradually absorbed the impact caused by the government's stabilising measures, and Hongkongers have regained confidence in the market. The agency has improved its forecast for total sales volume for this year from minus 26 per cent to minus 17 per cent compared with last year.