Over 10% of respondents think it is a good time now to buy a property, the second highest proportion recorded in the past 11 years Dream of home ownership undeterred by falling home prices as over one-fifth of young respondents remain interested in buying a new home HONG KONG SAR - Media OutReach Newswire - 12 December 2023 - Citi Hong Kong conducted a survey in September 2023 on residential property ownership in Hong Kong. The survey results found that:

• The proportion of respondents anticipating a rise in housing prices in the coming 12 months dropped to 10% in Q3 this year, compared with 12% in the same period last year. More than half of the respondents expected that housing prices would decline in the coming 12 months.
• The proportion of respondents who think it is a good time now to buy a property fell to 13%, three percentage points down from the same period last year but still the second highest proportion recorded in the past 11 years.
• 13% of the respondents expressed an interest in home ownership, two percentage points down from the same period last year. Of this group of respondents, 75% expected housing prices falling further to the point where making a purchase would eventually be considered desirable. There is a median gap of 24% between the perceived ideal housing price and the current market price. Among those who are interested to buy a property, the median of their ideal price is HK$5 million.
• The respondents in the age group between 21 and 29 were most interested in home ownership, with 21% expressing an interest to buy a property, representing the same level of interest seen last year. Among the young respondents, their discontent to their current place of residence is mostly related to their dissatisfaction with the transport network and supporting facilities there.
• 80% of the young respondents showed support for easing the "cooling measures" for the housing market, while 93% expressed support for a re-launch of down payment assistance policy. 56% of the respondents pointed to the positive effect of lower stamp duties on their desire to purchase a property and the price range of properties available for selection, while 46% suggested that a relaxation of property value limits for mortgage insurance would create a similar effect.
• For respondents who purchased property in the past five years, the top three reasons are: "desire for a more spacious living environment" (56%), "better transport accessibility" (41%), and "capitalizing on a buying opportunity accorded by falling property prices" (33%).
• 26% of the respondents who purchased property in the past five years opted for pre-sale properties, with approximately the same proportions choosing between the Cash Payment Plan and the Stage Payment Plan.
• 87% of the home-owner respondents expressed no interest in selling their property. 48% believed that the selling price should closely reflect the market price, compared with nearly 40% who suggested that the selling price should go above the market and merit a median premium of 20% over the market price.
• 12% of home-owner respondents expressed an interest in changing to a new property. The primary reason cited by 70% of them was a genuine need for a new home. Another 16% mentioned the availability of more suitable units in the market, while nearly 10% suggested the attraction of falling property prices.

10% of respondents remain optimistic about the housing market in the coming year despite the current downturn; while over 10% of respondents have expressed an interest in buying a property and the same proportion considers that now is an opportune time to do so During Q3 2023, 10% of the respondents believed that housing prices would rise in the coming year. This proportion represents a decrease of two percentage points from the same period last year. While another 57% of respondents expected housing prices to fall, 13% of respondents think it is a good time now to buy a property, hitting a second highest record in the past 11 years, easing back from the record-high of 16% last year. While the percentage of respondents considering now a good time to enter the market has remained historically high, many respondents are actually holding onto a wait-and-see attitude towards home ownership. This year, the percentage of respondents expressing an interest in home ownership has reverted to 13%, the level seen in 2021 and down two percentage points from the same period last year. Of this group of respondents, 75% expressed the wish to see housing prices declining further until reaching the level they would perceive as desirable for making a purchase. The level of price decline expected is quite significant, with the anticipated median downturn estimated at 24%. When asked about the level of property price considered ideal, those respondents interested in home ownership suggested a median price of HK$5 million, way lower than the current...