The June Hong Kong Residential Market Survey shows that sentiment surrounding the housing market has maintained positive momentum in June 2017, however sentiment has moderated from May.
Respondents reported that they have continued to see prices increase. However, measured in net balance terms the proportion of those reporting an increase versus those reporting a decrease fell below the trailing three month moving average.
Respondents also reported that sales volumes were flat in June, the first time volumes weren’t reported to have increased since January. The three-month moving average, as shown in Chart 1, suggests that volumes will begin to moderate in the coming months.
Against this backdrop price and sales expectations were more muted in June than in previous months, though respondents still expect prices and volumes to increase over both time horizons. Chart 2 indicates that respondents have lowered one-year price forecasts for the third consecutive month, and has held below the three-month moving average price forecast.
Source : RICS