Squarefoot announces "2020 Q3 Hong Kong Real Estate Market Outlook" survey findings

HONG KONG, July 20, 2020 /PRNewswire/ -- Property platform (Squarefoot), today announced the results of its 2020 Q3 Hong Kong Real Estate Market Outlook Survey.A The results show that nearly two in five respondents (39%) think that property prices will pick up in the next six months, reflecting a more optimistic attitude towards the property market compared to the previous quarter.The online survey, conducted in late June 2020 and involving 500 Hong Kong citizens, reflected quite polarised views about the housing market. While 39% of respondents expect an average growth of 9.4% in home prices in the next six months, 22% anticipate an average drop of 11.2% within the same time period. Results from the two previous surveys (conducted in December 2019 and April 2020) showed that only around 11% of respondents forecasted an increase in property values, with more than half believing they were likely to decline in the six months following the survey.The new survey results reveal that the proportion of respondents who believe property values have reached their peak in the past 12 months has dropped from 47% to 34% since the last survey. When looking into the drivers of a potential rise in home prices, respondents ranked 'Demand for residential property is still high' (65%), 'Housing market will still rise in long term' (57%) and 'COVID-19 outbreak is alleviating and the economy is starting to revive' (49%) as the top three factors. Homebuying desire remains steady, with buyers' appetite for purchasing residential property in the next 12 months dropping slightly in Q3 (24%) compared to the Q2 findings of 26%, but still reflecting an increase from 2019's figure. More than half of the respondents (52%) agree that the political environment will have an impact on their purchasing decisions. Among those intended homebuyers, 43% claim they will slow down, suspend or cancel their plans to make a purchase, which is 5 percentage points less than the overall respondents (48%). Nonetheless, 26% of intended buyers said they will accelerate their plans to make a purchase, which revealed a higher proportion compared to overall respondents (10%). This shows that a portion of intended homebuyers even forge ahead with their purchase plans. Commenting on the survey results, Kenneth Kent, General Manager, said, "The survey fieldwork was conducted when the outbreak was showing signs of alleviating. Although 83% of respondents still think current property prices are too high, 39% of respondents predict housing values will rise in the next six months, which demonstrates a reversal of expectations from the previous two surveys. We didn't see any significant correction in real estate prices due to the COVID-19 pandemic in the first half of 2020, which might represent buyers' confidence in the outlook for the market."
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