Hong Kong property prices have ‘bottomed out’ and will ‘rebound slowly’, sector leader says
Recent strength in stock market can help drive economic recovery and boost property sector, head of developers’ association says
Hong Kong property prices have bottomed out and will begin to rise gradually, a sector leader has said, voicing optimism that a recent surge in the stock market can help to stimulate the economy.
Stewart Leung Chi-kin, chairman of the Real Estate Developers Association of Hong Kong, also said on Sunday that his earlier prediction of 5 to 10 per cent growth in home prices this year could still be reached depending on the pace of economic recovery.
“If the economy is slow, the property market will not go up. The stock market is a starting point. If its performance improves, other areas will also have a chance to do well,” he said on a television programme.
“When people are earning more money, they are able to buy more things. Buying a house is an important event in life. If the economy can recover, the property market will improve too.”
Leung said the city would also benefit from a major stimulus package unveiled by Beijing last week to boost the economy and the property sector.
Hong Kong’s benchmark Hang Seng Index rose 10.2 per cent last week, following a 13 per cent surge the previous week.
