Over a quarter of Hongkongers ready to buy homes, scrap renting plans if cooling measures are lifted, Midland survey finds

If the easing of property curbs is announced, many tenants will switch from renting to buying and the property market will regain its upwards momentum, Midland Realty’s Sammy Po says

The overall property index suggested further weakness, with confidence slipping to minus 63 in September from minus 60 in August, a study by Rics and Spacious shows

3-MIN READ3-MIN

A gauge measuring three-month price expectations for homes crept up slightly to minus 66 per cent from minus 69 per cent in August. Photo: Bloomberg

Published: 7:25pm, 19 Oct 2023

More than a quarter of potential homebuyers are likely to abandon their plans of waiting it out and renting a flat if the Hong Kong government scraps property cooling measures, according to a survey by Midland Realty, one of the city’s largest property agencies.

The study found that out of 359 respondents, 27.9 per cent said they would rather buy a house than rent a flat in the next six months, should Chief Executive John Lee Ka-chiu announce the relaxation of property curbs when he delivers his second policy address on October 25. Should there be no easing of the cooling measures, only 13.7 per cent said they would be willing to purchase a home in the coming months.

The Post has reported that Lee, Hong Kong’s leader, is set to announce the relaxation of property cooling measures, which could include the scrapping or lowering of stamp duties on some transactions.

“If the easing of property curbs is announced, it could loosen up pent-up demand for housing, stabilise property prices and help people who need to buy a home,” said Sammy Po Siu-ming, CEO of Midland Realty’s residential division for Hong Kong and Macau. “Many tenants will switch from renting to buying and the property market will regain its upwards momentum.”

The online survey was conducted mid-October with the aim of finding out Hongkongers’ views on the widely anticipated lifting of the property cooling restrictions, which were implemented to prevent excessive speculation as well as to make homes more affordable.

The potential easing of these measures is likely to impact home prices, but not so much rents, the study said.