Hong Kong private home prices, among the most expensive in the world, softened from an all-time high for the second month in November, official data showed on Wednesday, but real estate agents expect the property market to gain as much as 10% in 2022.
The prices declined 1.2% last month, according to the data, compared to a revised 0.5% fall in October. Prices reached a record high in September according to the revised figures, and gained 3.1% in the first 11 months.
Property agents said buyers turned more cautious after prices hit a new peak, amid concerns that policy measures could be introduced to cool the market.
The fact no such measures were introduced is one reason that analysts cite for expected market gains next year.
The official price index lags one to two months behind the market, they added.
For the full year of 2021, property consultancy Cushman & Wakefield expects home prices to rise around 6.5% and transaction numbers to jump to the highest since 2012, at 74,600 units.
It forecasts home prices to rise another 5%-10% in 2022 on the improving economic environment.
JLL, another consultancy, expects prices to climb by up to 5% next year on strong demand and low mortgage rates.
“New private housing supply will remain low in the medium term … it will support the capital values of mass residential to stay firm,” Joseph Tsang, chairman of JLL in Hong Kong, said.
- Reuters with additional editing by Jim Pollard