Hong Kong’s residential property prices are expected to increase this year after the removal of Covid restrictions and the border reopened with mainland China, according to S&P Global Ratings.
(Bloomberg) — Hong Kong’s residential property prices are expected to increase this year after the removal of Covid restrictions and the border reopened with mainland China, according to S&P Global Ratings.
A price jump of between 5% to 8% is possible in 2023, clawing back some of the 16% slump in 2022, S&P analyst Edward Chan said in a research note on Wednesday. Primary residential property transaction volume is forecast to increase to 15,000-17,000 units in 2023, from 10,315 units last year.
The renewed growth is “supported by solid pent-up demand,” said Chan. Buyers could pile in “on the back of an improved economic outlook.”
The city is already seeing signs of a recovery. Prices for used homes increased by more than 6% since the beginning of the year, data from Centaline show. Major developers’ new-home sales are set to rebound this year with stronger demand from mainland Chinese following the removal of border controls.
Developers could cut prices further to boost sales if interest-rate rises curb housing affordablity, Chan said.
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