Citi bucks trend, forecasts Hong Kong property price growth
A report by Citigroup claims that widespread reports that the Hong Kong property market is set for collapse are incorrect, and forecasts that house prices will in fact advance 5% between December and March, whilst rising 3% over the whole of 2015; it claims that most speculation fails to acknowledge that there are strong fundamentals in place underpinning the market. The factors leading the bank to forecast continued price increases are the uncertainty over the future land supply, a shortage of housing, rising wages, and a lower participation rate from speculators and investors since 2011. This comes as analysts predict a fall in prices of 5% to 10% of 2016.

Terence Yang, general manager of marketing and sales at Kowloon Development, says interest in its South Coast development has exceeded expectations. Photo: SCMP Pictures