Hong Kong homes to become even more expensive in 2018, deepening the affordability crisis, analysts say
Aspiring homebuyers to face deepening affordability crisis, as experts forecast broad market gains of 10pc to 20pc next year
The dream of owning a home in Hong Kong will become even less attainable for those seeking to get on the housing ladder next year, as prices in the city are forecast to rise 10 to 20 per cent, according to predictions by the city’s two major property consultants.
The property market, already ranking as the world’s least affordable urban centre, will be propelled higher by the wealth effect from the booming stock market, record-low unemployment and high economic growth, the analysts said.
They added that demand continues to outpace supply, providing strong support to price growth.
JLL forecast Hong Kong home prices have the potential to increase as much as 20 per cent in 2018, while 10 per cent growth was forecast by Cushman and Wakefield in their year-end property market review and outlook for 2018, released on Monday.
“The million dollar question is what will trigger residential prices to fall?” said Buggle Lau Kai-fai, chief analyst at Midland Realty.