Hongkongers less bearish on property market, as decline in home prices begins to excite buyers: Citi survey

About 10 per cent of respondents said it was an excellent time to buy a home, the highest in nine years in Citi survey

A majority of them see more price weakness this year, even as the market slump has matched their median expectations

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A person wearing a protective mask pushes a stroller past residential buildings near the West Kowloon station in Hong Kong. Photo: Bloomberg

Published: 6:56pm, 18 May 2020Updated: 10:12pm, 18 May 2020

Hongkongers are turning less bearish about the city’s residential market after two major calamities in the past year made prices cheap enough to excite some buyers, according to a survey by Citigroup. On balance, the conclusion was it might be better to wait a little longer.

About 10 per cent of respondents considered the market conditions an excellent time to purchase a home, the US bank said on Monday. That is the highest level in nine years, and double the level recorded in a similar survey in January.

While negative sentiment prevailed, fewer people were sitting in the bearish camp, as home prices took a beating. Only 52 per cent of them said it was a terrible time to buy a home in March, versus 65 per cent in January.

“Most people would think that the virus will be gone soon, so this is pent-up demand released into the market” over the last 10 months, said Alva To, vice-president and head of consulting in Greater China at Cushman & Wakefield. The market is likely to remain volatile in the second half of this year, he added.

The coronavirus outbreak has dealt a giant blow to the city, worsening a recession, rocking several pillars of the economy and the HK$326 billion market for new homes. The city’s gross domestic product shrank by a record 8.9 per cent last quarter and the unemployment rate approached a 10-year high.