Opinions about the outlook for Hong Kong home prices next year are sharply divided, with the biggest bulls forecasting a repeat of this year's 30% price gains, while others caution that prices have already hit the limits of buyer affordability.
'Capital has nowhere to go but shift to Asia, and Hong Kong will be the beneficiary. We could see prices rising by more than 30% next year,' said Patrick Chow Moon-kit, research head of property agency Ricacorp Properties.
But David Ng, head of regional property research at the Royal Bank of Scotland, disagrees.
'The secondary market makes up the bulk of sales in Hong Kong (rising from 56 per cent in 2003 to 88 per cent in 2008), and more accurately reflects overall market sentiment, potential customers' ability to buy and price trends ... and there is an oversupply situation in the secondary market,' Ng says.
South China Morning Post