Real Estate
Hong Kong Housing Analysts Predict a Market Bottom This Year
- Drop in mortgage costs is expected to attract buyers
- Oversupply of homes may limit growth in property prices
The residential market began to show some signs of a recovery last year following a series of policies to scrap extra taxes and loosen mortgage rules, on top of the onset of the rate-reduction cycle.
Photographer: Lam Yik/BloombergThis article is for subscribers only.
Hong Kong’s residential property market is set to finally turn a corner after a three-year slump as lower interest rates draw more buyers, according to analysts. Just don’t expect prices to grow much.
Cheaper borrowing costs, an influx of mainland Chinese talent and robust rents will help to stabilize the market. Home prices — which have fallen to an eight-year low amid rate hikes and a population outflow — are expected to bottom out this year, although they are unlikely to increase significantly due to a lingering supply glut.