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Rosy Prospects For HK Property Market As 2019 Home Prices Tipped To Surge

Tin Shui Wai New Town - Hong Kong | Photo Credit: Wikipedia/Kongfaat

The outlook for Hong Kong’s property market appears upbeat this 2019 as home prices in China’s special administrative region are seen to increase following the dismal showing in the past year. Developers too are likely to ramp up on building and delivering more housing units purportedly to meet the booming demands, a new report said.

The latest market data showed that home prices in Hong Kong saw a swift step up at the start of the year, rising by up to four per cent by the end of March 2019, the South China Morning Post reported. The trajectory is expected to slow a bit and steady to three per cent through the second quarter, likely due to the anticipated increase in supplies, the Hong Kong-based publication indicated.

Fierce Competition

Market experts are saying developers “are likely to flood the market with more than 9,000 homes,” their confidence buoyed by the observed “recovering appetite” on the part of home buyers. At the same time, these builders will use aggressive pricing – likely in the form of discounted price tags – in order to court as many buyers as possible.

Unexpectedly, the trend of rising home prices in Hong Kong could encounter a slowdown by mid-year though analysts said the three per cent jump to be achieved in the second quarter is likely to be sustained in the months to follow given buyers’ confidence is at an all-time high.

This likewise holds true for developers, who are bent on employing marketing strategies to make housing units more irresistible to buyers.

“The upcoming pricing strategies offered by developers will indicate their confidence and the outlook of the sector,” the same SCMP report quoted Vincent Cheung, managing director of Vincorn Consulting and Appraisal, as saying.

The consensus, it seems, is now is the best time to accelerate the build plan as Hong Kong developers get increasingly convinced that market sentiment is slowly but surely sliding into the positive zone.

Bright Side For Investors

According to the SCMP report, buyers and investors alike have been looking positively on Hong Kong’s property market following the perceived stabilising effects of the recent stock market rallies in the SAR territory and in Mainland China.

It is believed as well that the correction phase in home prices, which last year possibly triggered a dip of 9.2 per cent in quarter four, has essentially completed its course.

In addition, buyers have been encouraged by the thought that the ongoing trade war between China and the United States would see a conclusive end soon. It helped too that the U.S. Federal Reserve is seen take a “dovish stance on interest rate rises for the rest of the year,” the SCMP report said.