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Citigroup: 51% of respondents predict that property prices will continue to fall by 42% in the next year and consider buying a haunted house

2022-11-22T06:01:46.314Z


With the haze of interest rate hikes and the uncertain economic outlook, the proportion of citizens who are pessimistic about the prospects of the property market has increased significantly. Citibank today (22nd) released the "2022 Residential Home Buying Intention Survey", and the results showed that 16% of the respondents believed that buying a home is now


With the haze of interest rate hikes and the uncertain economic outlook, the proportion of citizens who are pessimistic about the prospects of the property market has increased significantly.

Citibank today (22nd) released the "2022 Residential Home Buying Intention Survey". The results showed that 16% of the respondents believed that now is a good time to buy a home. % of respondents indicated that they intend to enter the market, a slight increase of 2 percentage points year-on-year.

In addition, 42% of the respondents indicated that they would seriously consider buying a haunted house, but most of them believed that the price of the haunted house should be discounted by more than 30%.


More than half of the respondents expect property prices to continue to fall in the coming year

The survey was conducted in September this year, with more than 1,000 respondents.

The survey results show that 51% of the respondents believe that property prices will fall in the next 12 months, a significant increase of 32 percentage points compared with the same period last year; as for the proportion of respondents who are optimistic about property prices in the next 12 months is From 38% in the same period last year, it dropped sharply to 12% in the third quarter of this year.

Many interviewees believe that now is a good time to buy a property, but it has not been translated into the desire to enter the market.

(Photo by Liao Yanxiong)

16% think now is a good time to buy a home

The survey also shows that 16% of the respondents believe that now is a good time to buy a property, a significant increase compared with the same period last year, and the proportion also hit a new high in the past ten years. Although a large proportion of the respondents think that now is a good time to enter the market, but Buyers' desire to buy a home only slightly increased by two percentage points compared with the same period last year, reflecting that the wait-and-see attitude is still strong.

Among the respondents who are interested in buying a property, more than 60% said that they expect property prices to fall further before considering buying a property, with an average expectation of a 17% drop in property prices.

In the past month, the proportion of respondents who visited real estate was similar to that of last year.

Among the respondents, 14% believed that they had a need to buy a home. Based on the survey results, it is estimated that nearly 590,000 people felt that they needed to buy a home.

63% of the respondents who needed to buy a home believed that the price of a property with a market value of 4 million to 6 million met their actual needs.

Li Guizhuang (right), head of retail banking at Citibank, predicts that property prices will still fall by 10% from October this year to the second quarter of next year.

32% of parents are willing to sponsor their children to buy a home

When it comes to why they want to buy a home, apart from property prices and actual needs, parental funding is the third most important reason for buying a home.

Among the respondents who are already parents, 32% are willing to sponsor their children to buy a home, and 41% of them are willing to contribute RMB 1.01 million to RMB 2 million.

In addition, more than 90% of the respondents are willing to pay a higher price to buy first-hand properties, and more than 40% of them are willing to pay a premium of 10% to 20% to buy first-hand properties.

In addition, the survey results also show that 42% of the respondents said they would consider buying a haunted house, and 72% of them thought that a discount of more than 30% was required to meet expectations; There are haunted houses, among which 38% think that a discount of more than 30% is needed to meet expectations.

Li Guizhuang: It is estimated that property prices will drop by another 10% before bottoming out in the second quarter of next year

Li Guizhuang, Head of Retail Banking at Citibank, said that Hong Kong people's home buying intentions are affected by the economic situation, mortgage interest rates and personal finances. Rising interest rates will have an impact on future property prices, increasing the burden of housing mortgages and the difficulty of passing stress tests.

She predicts that property prices will still fall by 10% from October this year to the second quarter of next year, that is, a drop of 20% from last year's historical high, and is expected to bottom out in the second quarter of next year.

Li Guizhuang also pointed out that due to the interest rate hike by the US Federal Reserve, banks in Hong Kong are under pressure to raise the prime interest rate (P mortgage), or increase it by 1.125%, which means that the total increase in P mortgage is 1.5%. The real interest rate will exceed 4%.

She also pointed out that it is not ruled out that the "Budget" announced in February next year may have the opportunity to "relax" and relax the "hot tricks" of the property market, such as exempting the 15% ad valorem stamp duty on the purchase of a second property.

She expects that as Hong Kong's economy picks up, people will return to the property market.

The "Girl in Red" haunted house on the same floor was booked by the buyer. The buyer signed the contract and sold it within a week. The property price fell in the third quarter. The number of negative equity cases increased by 9 times to 533. Northwest of the New Territories became the hardest-hit area under the epidemic, and the haunted house was sold. The "Cooking Case" household of Kangyi took the opportunity to sell Wu Guanliu: 34% off will be considered

Source: hk1

All news articles on 2022-11-22

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