An industry leader said Hong Kong’s real estate prices have bottomed out and will start to rise gradually, expressing optimism that the recent stock market rally could lead to economic stimulus.
Stewart Leung Chi-kin, chairman of the Hong Kong Real Estate Development Association, also said on Sunday that previous predictions of a 5-10% rise in house prices this year could still be achieved, depending on the pace of economic recovery.
“When the economy is down, the real estate market doesn’t go up. The stock market is the starting point. If its performance improves, other areas will have a chance to do well,” he said on a TV show.
“When people earn more money, they can buy more things. Buying a home is an important life event. As the economy recovers, the real estate market will improve.”
Mr Leung said the city would also benefit from a massive stimulus package announced by the Chinese government last week aimed at boosting the economy and real estate sector.
Hong Kong’s benchmark Hang Seng Index rose 10.2% last week, following a 13% rise the previous week.
