Hong Kong home prices expected to edge up in Q4, outperforming previous quarter: Midland
Midland Realty forecasts Hong Kong property prices will be stable with a slight upward trend in the fourth quarter, outperforming the third quarter. Analyst Sam Shing said the full-year price index may record double-digit growth, driven by improved rental yields, IPO market activity, and foreign tal
Hong Kong's property prices are expected to remain stable with a slight upward trend in the fourth quarter, outperforming the previous three-month period, according to property agency Midland Realty. The forecast comes as official data showed home prices rising for a second consecutive month in September.
The Rating and Valuation Department's September price index recorded a cumulative increase of over 7 per cent this year, while the rental index rose for an 11th consecutive month, gaining 5.8 per cent year-to-date.
Midland Realty analyst Sam Shing said the third quarter saw market consolidation, with slower growth in both transaction volumes and prices. Developers have narrowed new-home premiums or offered slight discounts, while improved rental yields have attracted long-term investors. Shing believes primary market transactions this month could again challenge the 2,000-unit mark.
Shing predicted home prices in the current quarter will be stable with a slight upward trend, performing better than in the third quarter. He expects full-year home prices to record double-digit growth, with large units potentially outperforming the market. This is supported by upgrade demand, foreign talent settling in Hong Kong, a vibrant IPO market, and senior executives entering the market, all boosting mid-to-high-end property performance.
Shing noted that the market generally expects the US Federal Reserve to keep interest rates unchanged at its meeting this month, with limited further rate hikes. He believes this will not significantly increase mortgage repayment pressure, and the current rate hike cycle will have a relatively small impact on Hong Kong's property market.