Southeast Asian property markets on the rise

Sentiment survey

A member of REA Group, announced the research findings from the Hong Kong Property Market Perspective Survey 2017 H2. Findings showed that 91% of 2,993 respondents thought the Government failed to introduce effective measures to curb the property prices in the last five years. Even though the results showed that 50% of respondents expected a continuous rise in local property prices, 57.5% of respondents believed Mrs. Carrie Lam and her administration will be able to enforce feasible measures to cool down the real estate market. Meanwhile, 55.8% of respondents believed that Southeast Asian markets bear greater investment value over the traditionally popular markets. In addition, 49% of respondents believed they would receive a higher potential of return on investment in the overseas property market, and thus they tend to make their investment overseas.

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Sentiment survey

A continuous rise of housing prices

Over 90% of respondents saw current property prices as at a high level. Most respondents thought the cooling measures failed to solve the problems in the property market. Namely, insufficient land supply, increase in population and hot money from mainland China, coupled with the suppression on the supply of second-hand properties as well as the properties available for rent. As a result, it caused a further rise in rent and property prices.

Kerry Wong

Increased confidence in Chief Executive Mrs. Carrie Lam

In the past five years, new housing policies were applied to impose restraints on property prices. However, there were over 60% of respondents who expressed their dissatisfaction on the effectiveness of those policies, while 22.2% of respondents gave CY Leung’s performance on housing policies a zero rating on a 10-point scale (1 being the lowest and 10 being the highest). On the contrary, Mrs. Carrie Lam scored higher and was expected to enforce effective measures to cool the property market.

Decreased confidence in homeownership

With an average score at 4.2 on a 10-point scale, over 60% of respondents reported that their confidence in purchasing property now is lower than it was 5 years ago. The prime factor for the public’s increased desire to acquire property is change in property prices, followed by China’s social and political impact on Hong Kong, changes in social environment and the influence of property policies introduced by the Government. Thus, social stability is the key to induce the public’s desire to purchase property.

Terence T. L. Chong

Peter Poon Wing-cheung

Inclined to invest in overseas property markets

Compared to previous research, people who are planning to invest in overseas or in mainland China properties grew by 17% to 40%. The Australian real estate market is still embraced by the majority amid other countries. China, Japan, the UK and Thai markets received significant attention from the respondents. This result also indicated an upward trend for Hong Kong citizens to invest in emerging Southeast Asian markets and 50% of respondents showed interest in Malaysia, Vietnam, Cambodia and Indonesia and expected a better return on investment in these markets.

A relatively higher potential return on investment in overseas property markets provided basis for Hong Kong citizens to invest overseas and 30% of respondents reported that they would like to live and enjoy their life after retirement overseas. With an increase of 4% from the first half of the year, over 40% of respondents believed that the surge in property prices is the primary reason that made them more inclined to own property overseas.

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