Mass residential prices tipped to rise at least 10pc
MASS residential prices are expected to rise 10 per cent or more this year, according to a poll by the Society of Hong Kong Real Estate Agents.
Society president Michael Choi Ngai-min said most agents were optimistic about the mass residential sector, but were relatively divided about the future of the luxury market.
Nine out of 15 major estate agents polled are predicting mass home prices to grow 10 per cent over the year.
Two tipped a rise of between 10 and 15 per cent, one expected five per cent and three expected no change at all.
Two of the agents surveyed predicted a fall of 10 per cent in luxury residential prices this year but four expected to see no change.
Four agents predicted a rise of 10 per cent, four predicted a growth of between 10 and 15 per cent, and the remaining agent tipped a rise of between 15 and 20 per cent.
The agents were optimistic about the market for the territory's large housing estates and most forecast an increase in prices.
Seven agents expected a rise of 10 per cent for flat prices in major housing projects, two tipped an increase of between 10 and 15 per cent, and three predicted rises of up to 20 per cent. Three projected no change.
Centaline Property Agency director Shih Wing-ching said the mass residential market would experience steady growth as banks had been more relaxed about mortgage lending and the Government had decided not to intervene further in the market.
Although the market might face pressure in the short term due to increased supply, he expected mass home prices to grow 10 to 15 per cent for the year.
Midland Realty managing director William Fung said luxury residential prices had picked up by about five per cent in March and transactions had increased by 60 to 70 per cent.
But increased supply and developers' recent sales of new units at reduced prices had put pressure on the sector this month, he said.
Society vice-president Tony Chan urged the Government to allow banks to lift the mortgage limit to 80 per cent from 70 per cent to help home buyers.