The July Hong Kong Residential Market Survey shows that sentiment surrounding the housing market continues to moderate, however remains positive. Although a substantial majority of respondents in net balance terms continued to report an increase in home prices over the past three months, expectations for price increases over the next quarter moderated for the fourth consecutive month.
Respondents reported that demand from new buyers was little changed in July. This was true both at the headline level and from residents of Mainland China, despite a stronger yuan and cheaper access to offshore funding reducing the cost to buy for residents of the mainland.
The effects of softer demand on prices were somewhat offset by tighter supply as respondents reported no change in the supply of properties for sale in July. As shown in Chart 1, this indicates that the expectation for prices is likely to continue to moderate, though remain positive in the short-term.
Source : RICS