Home prices will rebound by up to 15 per cent this year as market sentiment turns around on last month's successful land sale and Government measures to stimulate economic recovery, says Vigers Hong Kong.
But the office market will remain quiet with investors likely to stay on the sidelines amid concerns over 5.6 million square feet of office space becoming available in the next two years, the company says.
Vigers chairman Gareth Williams said the GDP growth figure of minus 5.7 per cent for the last quarter of 1998 had improved slightly from the previous quarter's minus 6.9 per cent.
'If such growth continues for two more consecutive quarters, we believe the property market will rebound gradually by 10 per cent to 15 per cent before the end of the year,' he said.
In its latest quarterly property market review, Vigers said sentiment in general had improved considerably because of several factors, including the proposed Cyberport and Disney projects.
Interest rates were cut during the quarter and banks started to compete aggressively for mortgage business, it said.
