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Hongkongers less bearish on property market, as decline in home prices begins to excite buyers: Citi survey

  • About 10 per cent of respondents said it was an excellent time to buy a home, the highest in nine years in Citi survey
  • A majority of them see more price weakness this year, even as the market slump has matched their median expectations

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A person wearing a protective mask pushes a stroller past residential buildings near the West Kowloon station in Hong Kong. Photo: Bloomberg
Albert Han
Hongkongers are turning less bearish about the city’s residential market after two major calamities in the past year made prices cheap enough to excite some buyers, according to a survey by Citigroup. On balance, the conclusion was it might be better to wait a little longer.
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About 10 per cent of respondents considered the market conditions an excellent time to purchase a home, the US bank said on Monday. That is the highest level in nine years, and double the level recorded in a similar survey in January.

While negative sentiment prevailed, fewer people were sitting in the bearish camp, as home prices took a beating. Only 52 per cent of them said it was a terrible time to buy a home in March, versus 65 per cent in January.

“Most people would think that the virus will be gone soon, so this is pent-up demand released into the market” over the last 10 months, said Alva To, vice-president and head of consulting in Greater China at Cushman & Wakefield. The market is likely to remain volatile in the second half of this year, he added.

The coronavirus outbreak has dealt a giant blow to the city, worsening a recession, rocking several pillars of the economy and the HK$326 billion market for new homes. The city’s gross domestic product shrank by a record 8.9 per cent last quarter and the unemployment rate approached a 10-year high.

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