HK property price, demand growth predicted
( 2003-12-18 22:11) (Xinhua)
Hong Kong Midland Realty Group predicted at a press conference on Thursday
that there will be a growth in housing needs and property price in Hong Kong in
the coming years.
Chairman of Midland Realty Wong Kin Yip predicted that new household
formation would amount to 28,900 per annum in the next 10 years, representing a
decrease of 33 per cent from the last 10 year's average. Despite the low
household growth, Wong shrugged off the concern of oversupply. He said that due
to the limitation of land supply, he expected home demand and supply will reach
equilibrium in the near future.
According to a study, the reduction in family size has led to a mild growth
in the number of nuclear families. Midland Realty estimated that such a growth
would be able to generate substantial genuine needs for housing.
Chief Analyst of Midland Realty Buggle Lau said that due to the abolition of
the government's Housing Ownership Scheme, a plan to assist residents to buy
their own home, most of the newly formed families will enter the private home
market. He believed the level of property prices is very affordable and so new
demand for private residential units will be great.
For the property price, Wong Kin Yip believed that stable growth in housing
needs coupled with clear government policies would help home value to maintain
stable growth. He said the property price has already resumed upward trend and
they are expected to rise 10 percent to 15 per cent annually in the coming
years.
Midland Realty Group, founded in 1973, provides real estate agency services
and real estate marketing services for Hong Kong residents.
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