Media365
Hong Kong’s worst residential fire in history has cast a shadow over property sentiment, but the overall impact on the home market is likely to prove temporary because broader economic fundamentals will continue to drive longer-term trends, according to analysts.
“Everyone is more cautious right now, and because of this incident, the market sentiment isn’t that great,” said Sammy Po, senior director at Midland Realty. “Viewing numbers in Tai Po have dropped by 30 to 40 per cent on a daily basis. Some buyers are taking a wait-and-see approach in the short term.”
However, analysts said the incident would not derail pricing dynamics.
“This was a single and unfortunate event,” said Derek Chan, head of research at Ricacorp Properties. “Market movements continue to be dictated by interest rates, economic conditions and supply-demand fundamentals. We have not observed any special pressure on prices so far.”
Hong Kong home prices have shown steady improvement this year, supported by firmer demand in the mass-market segment. Centaline’s City Leading Index, a gauge of lived-in home prices, stood at 142.49 for the week ending November 16, up 3.52 per cent so far this year to a 73-week high.
