Respondents remain bullish on housing but expect tighter credit conditions

Respondents remain bullish on housing but expect tighter credit conditions

The May Hong Kong Residential Market Survey shows that sentiment surrounding the housing market has maintained positive momentum in May 2017. However respondents are starting to become more hawkish on the outlook for credit conditions.

Respondents’ indicated that they saw a net deterioration in credit conditions over the last month and are also expecting credit conditions to deteriorate over the next three months. Note this survey was closed prior to the US Federal Reserve raising interest rates on June 14. Recall that excess liquidity at Hong Kong banks has supported credit conditions as banks have not had to pass on interest rate hikes to customers.

Source : RICS