REA Group has released their findings from the ‘2018 H2 Hong Kong Real Estate Market Outlook’ survey on November 21. Property prices are expected to take a tumble, further triggering the already-inherent desire to own property—but what do the majority of Hongkongers really think about the real estate market and its prospects?
Nerida Conisbee, chief economist of REA Group, pointed out that the last time this survey was conducted, early this year in March, “the Hong Kong market was red hot and respondents thought prices would rise by more than 10% in 12 months … [but] prices started dropping around 5% in July”. She cited the biggest factor to have driven this decline as “the US-China trade war and the impact that will have on economic growth”. Rising mortgage rates, stock market jitters and potential oversupply are also issues of concern.
Through squarefoot.com.hk, REA Group provides real-time and holistic real estate information and leading market insights to the people of Hong Kong. Kerry Wong, chief executive officer of Greater China Region, REA Group, said that the survey allows for identifying upcoming trends more accurately, which will put the new squarefoot.com.hk and REA Group in a position “to empower the general public in acquiring more information on current market situations, enabling informed decision making”.
‘2018 H2 Hong Kong Real Estate Market Outlook’ key findings:
Respondents expect parents to support their home purchase with at least HK$7 million
73% of respondents would require financial support from their family; three-quarters would like their parents to settle their down payment while they pay the mortgage. This signals that saving enough for the down payment was the major factor restricting Hongkongers from buying property.
Property dreams shift overseas due to high prices
14% of respondents are considering purchasing property overseas (including mainland China). The top three countries of choice are mainland China (38%), Japan (35%) and Taiwan (19%). The first two’s ranking remains unchanged from the 2018 H1 survey; Japan, however, saw an increase of 9 percentage points, and Taiwan has risen from fifth to third place.
Respondents choosing to travel instead of buying property
31% of respondents do not intend to purchase property in Hong Kong, instead choosing to ultilise their money elsewhere. 62% would rather travel the world, while investments were also a popular choice, with 43% interested in the stock market and 28% in overseas property.