2024-04-25 28Hse Editor
Hong Kong's economic and property market performance have been greatly affected by the epidemic and the closure of travel borders with the Mainland. With the epidemic subsiding and the economy recovering, people now have different views on the property market. In view of this, 28Hse, the Hong Kong real estate information platform, has conducted a survey on buyer confidence in the Hong Kong property market in 2023.
Between March 1 to 7, 2023, 28Hse gathered 3,528 responses, from participants aged 18-61, in an online questionnaire. The survey was separated into four sections: respondents' attitudes towards the property market, respondents' desire to buy a home, factors affecting their home ownership, and respondents' home ownership area and factors surrounding their home purchase choice. Following data analysis, the report and conclusions have been summarized below.
According to the survey, more than half (54%) of the respondents expected residential property prices to rise in the next 12 months, with 43% expecting a rise of within 10% and 14% of participants expecting a rise of 10% or more. These figures reflect that most respondents are optimistic and positive about the property market.
Furthermore, 41% of respondents were generally interested in buying a home, while over 37% were “interested” or “very interested”, and 22% were not interested. The results further reflect buyer optimism towards the post-pandemic property market
Nearly 40% (36%) of the respondents considered 2023 to be a “good” or “very good” time to buy a home, while nearly 50% (49%) considered it to be an average time, and only 14% considered 2023 to be a “bad” or “very bad” time to buy a home.
Although respondents remain optimistic about the 2023 property market, they are still cautious in their home-buying decisions. More than half (57%) of the respondents said they would not consider buying a home in 2023, while more than 40% (43%) would consider buying a home. Results also showed that more than 40% (47%) already owned a property, they would not consider buying another property as an investment or for home exchange. The most important factor deterring them from buying a home was the unaffordability of property prices (72%), followed by the increase in mortgage rates (56%).
On the other hand, over 30% (36%) of respondents who were interested in buying a home had visited a property in the past 3 months, including both for sale and for rent, and over 70% (77%) had visited a property within 4 times. Buying a flat is a major decision, with over 60% (66%) of respondents citing the property market trend as the most important factor influencing their decision, followed by the need for housing, accounting for over 30% (36%). As for the budget for buying a property, 39% chose a budget of HK$4 million to HK$6 million, over 20% (27%) selected HK$6.01 million to HK$8 million, 17% preferred HK$8.01 million to HK$10 million, and 17% chose HK$10 million or more.
The survey also found that over 20% (27%) of the respondents believed that the adjustment of stamp duty bands would affect their decision to buy a home. On 22 February, the Financial Secretary Paul Chan Mo-po delivered a new Budget speech in which he adjusted the ad valorem stamp duty bands, resulting in a tax reduction for properties valued between HK$2 million and HK$10.8 million. This reflects the policy's desire to attract buyers to enter the market faster, to further boost confidence in the property market.
Carrying on from the previous section, the survey revealed that 70% (72%) of the respondents preferred second-hand properties to first-hand properties. The three main attractions of second-hand properties were the practicality of spacing (30%), the possibility of viewing existing flats (29%) and the possibility of buying and living in a flat (22%).
In addition, over 40% (48%) of potential home buyers preferred the New Territories, followed by 30% in Kowloon and finally 22% on Hong Kong Island. They were familiar with the district because of its property prices, the School Net and the fact that their extended family lived in the same district. From the above figures, it can be seen that respondents are more inclined to buy second-hand properties in the New Territories in 2023.
Although property prices in Hong Kong have experienced sharp changes due to the epidemic and the external economic environment, the negative factors that have been overshadowing the Hong Kong property market in the past have largely been eliminated, and the market expects the US interest rate to peak this year.
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