Hongkongers are optimistic about home prices rising this year, Citi survey finds
- A third of respondents to Citibank Q1 2021 Residential Property Ownership Survey believed that property prices would rise this year, up from 16 per cent in the same period last year
- View that home prices could rise is also held by Morgan Stanley, which estimates 3 per cent growth in 2021
Hongkongers are optimistic about home prices rising this year, having adapted to the cyclical challenges of the Covid-19 pandemic, Citibank said.
A third of respondents to the Citibank Q1 2021 Residential Property Ownership Survey said they believed that property prices would rise this year, up from 16 per cent in the same period last year, while 47 per cent expected them to remain stable, up from 28 per cent last year.
The percentage of respondents that expected home prices to drop declined, from 57 per cent last year to 20 per cent this year. The results of the survey were released on Tuesday.
Property transactions have soared this year thanks to low interest rates and demand from new immigrants. These factors are offsetting the impact of increased supply from people selling up and leaving Hong Kong, paving the way for home prices to rise, analysts and data suggest.
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A random sample of more than 500 people were polled for the survey, which has been running since 2010, by University of Hong Kong Social Sciences Research Centre. The poll was conducted in March.