Henderson Land Development chairman Lee Shau-kee expects residential property prices to rise a further 5 per cent by the end of the year.
Mr Lee made the forecast after yesterday's annual meeting of Henderson's 32.6 per cent-owned associate Hong Kong and China Gas (HKCG), of which he is chairman.
'Transaction volume has been strong and prices have probably reached the bottom,' he said.
'Prices have gone up by about 3 per cent in the past month, which is much more moderate than the gains seen in the stock market.' HKCG managing director Alfred Chan Wing-kin said after the meeting that gas sales had grown less than 2 per cent in the first quarter due to the unusually warm weather.
However, the company had not lowered its 4 per cent gas sales growth forecast as business from the restaurant sector and new homes was expected to pick up.
During the quarter, equipment sales grew about 20 per cent year on year.
