The August Hong Kong Residential Market Survey indicates that sentiment surrounding the housing markethas picked up modestly. Respondents continue to report that new buyer enquiries increased in August. The increase in demand was broadly driven by domestic buyers, as enquiries from mainland Chinese buyers remained flat.
The increase in new instructions to sell matched the increase in enquiries, which would appear to minimize the upward pressure on prices from the demand-supply gap. However stripping out Hong Kong Island, where contributors reported flat demand, the gap between demand and supply continues to put upwards pressure on properties in the New Territories and Kowloon.
A substantial majority of respondents continued to report headline price increases over the last month. A modest majority of respondents also reported an increase in sales volumes, which should become visible in Hong Kong government statistics in the coming month.
Source : RICS