1 in 6 Hongkongers are eyeing home purchase in next 5 years: HSBC survey

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Around 300,000 households will be in the market, exceeding expected supply, the lender estimates

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A view of a residential estate at Mei Foo Sun Chuen, Hong Kong, on November 7, 2024. Photo: Alexander Mak

Cheryl Arcibal

Published: 7:02pm, 6 Dec 2024Updated: 7:09pm, 6 Dec 2024

One in six Hongkongers is considering purchasing a home in the next five years and a third of those prospective buyers are entering the market for the first time, a survey by HSBC found.

Given the city’s population, HSBC estimates the number of prospective homebuyers at 300,000 households. This means housing supply will fall short of expected demand, as the government aims to supply 132,000 private units and another 123,000 public units to the market over the next decade, according to HSBC.

Of the individuals who said they would be likely to purchase a home, two-thirds already owned property, the survey of 3,170 Hong Kong residents aged 18 to 65 found. And among those looking to buy a second property, 72 per cent said they were motivated by investing and earning passive income, while about 31 per cent of the first-time buyers were also driven by investment goals.

Hong Kong recorded 6,298 new and lived-in home sales in November, the most since April and the second-highest total this year. The improved sentiment came after an initial half-point reduction in interest rates in the city in September, followed by the easing of mortgage rules for homebuyers and investors in October.

“Recent trends show improved sentiment in the market, aligning with our survey findings, which were conducted after the first interest rate cut in September but before the government’s easing of property cooling measures,” said Sidney Massunaga, head of retail products, wealth and personal banking at HSBC Hong Kong. “The second rate cut of the year, announced in early November, is expected to further stimulate interest in property purchases.”

The rate cuts have brought borrowing costs at Hong Kong commercial banks to their lowest level in two years. That lightened the monthly burden on mortgage borrowers by about HK$709 (US$91) to HK$22,803, according to local mortgage broker mReferral, based on a typical HK$5 million, 30-year loan.