JP Morgan goes bullish on Hong Kong home prices, expecting gains of up to 7 per cent this year
- Buoyant liquidity conditions, improving sentiment, to underpin gains in residential prices from April, says JP Morgan researcher
- Sino Land’s Mayfair by the Sea 8 in Tai Po garners lacklustre response on Tuesday, as only 31 of 118 flats are sold as of 6pm
JP Morgan has joined CLSA and Citibank in saying home prices in Hong Kong will rise from April to December under improved sentiment and continuous high liquidity, though analysts continue to caution the commercial market is likely to remain soft.
Home prices were likely to rise 5 to 7 per cent after a short-lived price correction of 15 per cent, said JP Morgan’s managing director and head of Asia property and Hong Kong research Cusson Leung during a media briefing on Tuesday.
Leung’s updated market view came after CLSA and Citibank, among other analysts, last week said home prices were likely to stabilise in March and rise by up to 15 per cent by the end of the year.
“In November, the Federal Reserve said the rise in interest rates would start to slow down in pace,” Leung said. “In December, a developer sold about 1,500 flats at a Kwun Tong project with 2,000 flats on offer. The sentiment was changing very rapidly.”
He added that the project drew a strong response from prospective buyers in terms of registration after the developer cut prices by 10 to 20 per cent, reflecting the underlying demand for property bargains.