The January 2016 RICS Hong Kong Residential Market Survey shows more respondents reporting prices falling rather than rising. Indeed, the headline price net balance remained in deeply negative territory at -76%, unchanged from December and marking the lowest reading since the survey began in March 2015.
With prices still well above their 1997 peak and housing affordability stretched, potential homebuyers appear to be deferring purchases until prices correct further. New buyer enquiries remain depressed with 60% more surveyors reporting a fall in demand as opposed to an increase. The net balance on new instructions continues to reflect weakness at -16%, albeit less so than was reported in December. Meanwhile, newly agreed sales showed no signs of improvement at -62%.
Source : RICS