57 percent of Hong Kongers expect a drop in property prices, according to a recent Citi residential property ownership survey, amid a coronavirus-fueled slowdown.
This represented a sharp 15 percentage point increase compared to results quarter prior to the coronavirus outbreak, Citi said.
Although Hong Kong people have managed to largely avert any major coronavirus-linked blows suffered by others internationally, the economy shrank a record-high 8.9 percent while the unemployment rate soared to nearly a 10-year high. According to a local property benchmark, Centa-City Leading Index, home prices fell 7.6 percent on average since its peak in June last year.
Market Divided
Interestingly, 52 percent of respondents were «very or rather» disinterested in purchasing a home – a 13 percentage point dip compared to the last quarter. And 10 percent of called the current timing «good or excellent» to purchase – a 9-year high – despite limited interest in property ownership during this period (17 percent).
«This reflects little impact of COVID-19 on the respondents' plans to purchase or unload a property as they continue to adopt a wait-and-see attitude towards the prospects of the property market,» said Josephine Lee, head of retail banking for Citi Hong Kong. «We suggest that interested homebuyers comprehensively assess their financial position and choose a mortgage plan that best meets their needs.»
Citibank commissioned the University of Hong Kong to conduct the survey which involved 500 random local respondents.
