Justin Chiu: HK property market predicted to recover steadily after 30% prices drop
Justin Chiu, a Member of the Executive Committee and Executive Director of Cheung Kong Hutchison (Holdings) Limited, stated today (Oct. 9) that the overall property market in Hong Kong has bottomed out, but a sharp rebound is not expected in the immediate future.
For the remainder of the year, Chiu anticipates a moderate increase of 3% to 5% in property values, hoping for a gradual and stable revitalization of the market.
Chiu noted that property prices have cumulatively dropped by approximately 25% to 30% from their peak. The current high inventory levels among property developers are limiting price increases. He believes that as the economy improves and residential demand grows, property prices will steadily rise once the market sentiment recovers.
Despite a decline of 5% to 7% in property prices since the beginning of the year, Chiu expects that prices might slightly drop compared to last year, with the exact extent depending on market confidence.
Regarding recent stock market volatility, Chiu remarked that property investment remains more stable than the stock market, suggesting that now is a good time to buy property for personal use or investment.
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