Citibank: It is estimated that this round of Hong Kong property market uptrend cycle will last at least 5 to 7 years. It is a good time to enter the market now.

The Hong Kong second-hand property price index rebounded by 4.7% last year, and the market remains optimistic about the outlook. Citigroup's director of research for Hong Kong and mainland China's real estate, Chen Junwei, frankly stated that based on historical trends, he estimates that this current property market upswing cycle will last at least 5 to 7 years, with a cumulative increase in property prices of about 15% in the next two years alone. He believes that the property price index could surpass the historic high point in August 2021 within 5 years, making it a good time to enter the market to buy property. He pointed out that the property market is accelerating due to a temporary shortage of land supply, with only an average of 10,000 units supplied annually in the past two years, and it is projected to be around 15,000 units in the next two years, while the number of new homes sold in a year can reach up to 22,000. In the past 3 years, residential rents have increased by 20%, with an average annual increase of about 6%, while property prices have only rebounded by 7% from their low point in March last year. He believes that in the next one to two years, property prices will catch up with the increase in rents.