A slew of forecasts have emerged over the past few months, with predictions of about a 10-20 percent decline in residential prices expected by the end of 2019, with rising local interest rates cited as a key factor.
Investment management company JLL warned last month that prices could decline as much as 25 percent, if the trade war between the United States and China worsens.
“Affordability’s not good and interest rates are going up, that’s for sure. But still, in nominal terms, interest rates are at the very low end of long term averages (and) unemployment is very low,” Churchouse said.
Nicole Wong, regional head of property research at CLSA in Hong Kong, forecast in August that prices would decline 15 percent over the following 12 months.
Speaking on CNBC’s “Street Signs” on Monday, Wong said prices declined six percent in the past 3-4 months, adding they have “corrected very quickly.”
However, purchases from a select cohort of mainland Chinese buyers will likely to prop up prices next year, she said.
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