More than half of respondents expect further dip in home prices; interest in home ownership stable
HONG KONG, CHINA – Media OutReach – September 24, 2019 – Citi Hong Kong announced
today the results of its survey on residential property ownership in Hong Kong
for Q3 2019. According to the survey, more than half of the respondents expected
home prices in Hong Kong to fall in the next 12 months. The interest in
property ownership showed negligible changes from the preceding quarter, of
which respondents aged under 44 expressed a stronger interest than that of the
whole. The view on whether it is a good time for home purchase was also about
the same as the previous quarter.
More than half of respondents expected home price to fall
Results of the latest survey showed more than half of the
respondents are expecting home price in Hong Kong to fall in the next 12
months, up 28 percentage points from the previous quarter, while the percentage also increased from that of Q1 2019.
How do you think home prices will trend in the next 12 | |||||
Percentage of Respondents | |||||
| Q3 2018 | Q4 2018 | Q1 2019 | Q2 2019 | Q3 2019 |
Upward | 38% | 18% | 42% | 36% | 18% |
Flat | 33% | 25% | 35% | 36% | 26% |
Downward | 29% | 57% | 24% | 28% | 56% |
Base: All Respondents
Relatively stronger
interest in home buying among respondents aged
under 44
In Q3 2019, 20% of the
respondents expressed a very or rather strong interest currently in purchasing
a property at the moment, about the same level as
the preceding quarter. The result showed no significant change despite their views on the property market. 24% of respondents aged
21 to 29 shared
a very strong or rather strong interest in buying a
home,
while such percentage for respondents aged 30 to 44 was 28%, which
was higher than the overall percentage in Q3 2019. The
figures indicated a keen interest in residential property
ownership among respondents aged under 44.
How interested are you in purchasing a | |||||
Percentage of Respondents | |||||
Q3 2018 | Q4 2018 | Q1 2019 | Q2 2019 | Q3 2019 | |
Very/rather | 21% | 18% | 26% | 25% | 20% |
Neutral | 33% | 33% | 29% | 28% | 29% |
Very/rather | 46% | 49% | 45% | 47% | 51% |
Base: All
Respondents
Respondents’
views on the timing of home purchase similar to
that of the previous quarter
Respondents who
felt it is a good/excellent time to purchase a home accounted for 3%. While
the percentage of those who felt it is a bad/terrible time fell slightly from 71% in Q2 2019 to 68% in Q3 2019, they remained
a majority.
If you do not own any property now, taking into | |||||
Percentage of Respondents | |||||
Q3 2018 | Q4 2018 | Q1 2019 | Q2 2019 | Q3 2019 | |
A good/excellent time to purchase | 2% | 4% | 4% | 2% | 3% |
Neutral | 24% | 29% | 39% | 27% | 29% |
A bad/terrible time to purchase | 74% | 67% | 57% | 71% | 68% |
Base: All Respondents
Josephine Lee, Head of Retail Bank, Citi Hong
Kong, said, “The results show that many local citizens are expecting a continuous fall in property prices, but the overall interest in property ownership sees no material change despite their views
on the property market, in which respondents aged under 44
still express a relatively stronger interest in buying homes. We recommend interested homebuyers to comprehensively assess their financial situation and burden, set a budget according to their financial capacity, 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 August 2019. Since 2010, Citibank has
conducted a quarterly survey on the housing market to assess the current state
of homeownership in Hong Kong, track their interest in home purchase and public
expectations in terms of future housing price trends.
Source: Citibank Q3 2019 Residential Property
Ownership Survey
