Over 70% of respondents feel that it is a bad or terrible time to purchase a home in Hong Kong, according to a Citi Hong Kong survey on residential property ownership in Hong Kong for Q2 2019.
The survey results, which were announced on July 18, showed that expectations of the respondents on the trend of home prices are similar to those in the previous quarter and that many local residents are expecting a rise in home prices in the next 12 months. Respondents' interest in home purchase has not been completely affected, with a quarter of respondents expressing a very or rather strong interest in buying a property now.
More than 70% of the respondents said it is not a good time to purchase a home now
Seventy-one percent of the respondents felt that it is a bad or terrible time to purchase a home in Q2 2019. More than 70% of the young respondents aged between 21 and 29 felt that it is not a good time to purchase a home. Two percent of the respondents in Q2 2019 felt that it is a good or excellent time to purchase a home, down from 4% in Q1 2019.
Respondents' expectations on the trend of home prices are similar to those in the previous quarter
The expectations of local citizens on the trend of home prices have reversed in Q1 2019. More respondents are expecting that home prices in Hong Kong will rise in the next 12 months. The expectations of the respondents on the trend of home prices in Q2 2019 are similar to those in the previous quarter, with 28% of the respondents expecting home prices to fall in the next 12 months, while 36% of them expect home prices to rise in the next 12 months.
Nearly a quarter of young respondents are still interested in purchasing a home
Many local citizens are expecting a rise in home prices in the future without completely affecting the interest of respondents in buying homes. Twenty-five percent of the respondents expressed a very or rather strong interest in buying a property in Q2 2019, still representing a high percentage in recent years. Nearly a quarter of the respondents aged between 21 and 29 have the same interest.
Josephine Lee, head of Retail Bank, Citibank Hong Kong, says, "The results show that many local citizens are expecting that the home prices will continue to rise and they still have a certain interest in buying a home. We recommend that potential home buyers should first measure their home affordability, comprehensively assess their financial situation and burden, and choose a suitable mortgage plan."
Citibank commissioned The University of Hong Kong Social Sciences Research Centre to conduct the survey, interviewing over 500 Hong Kong respondents by phone in June 2019. Since 2010, Citibank has conducted a quarterly survey on the housing market to assess the current state of home ownership in Hong Kong, gauge public opinion on the subject of home ownership, and public expectations in terms of future housing price trends.