The October Hong Kong Residential Market Survey suggests sentiment surrounding the housing market is continuing to improve. Contributors reported a steady rise in headline prices (as indicated in Chart 1) alongside an increase in buyer demand and an optimistic outlook for near term prices and sales volumes.
As shown in Chart 6, headline demand and supply accelerated in October; this slightly stronger picture for activity comes amidst robust GDP growth figures in Q3 2017 driven by a pick-up in private consumption. Significantly, the increase in new buyer enquiries outpaced the increase in new instructions for the first time in five months. When disaggregated (Chart 12), demand growth bounced back in Kowloon and Hong Kong Island, outstripping supply growth, whereas in the New Territories, demand and supply indicators were relatively similar.
Prices over the past month continued to increase firmly at the headline level, with enquiries from mainland China still flat; price growth was once again driven by domestic buyers. At the same time, respondents also noted a steady increase in sales volumes for the fourth consecutive month.
Source : RICS