Latest news with #rentaldemand
South China Morning Post
6 days ago
- Business
- South China Morning Post
Hong Kong housing market bound for slow recovery amid cheaper mortgages: analyst
Hong Kong's housing market is poised for a gradual recovery starting in the second half of this year, as population inflows, falling interest rates and a rebound in rental demand restore confidence, according to Bocom International. The investment bank said home prices could rise by 3 per cent over the next six months, followed by 5 per cent increases in both 2026 and 2027, as sentiment improved amid declining borrowing costs while returning residents and arriving professionals boosted demand. The upbeat forecast came after signs of a cooling market amid geopolitical tensions and stock-market volatility. Property transactions in Hong Kong dropped to a three-month low in May, with the number of deals falling 11 per cent to 6,442 from a month earlier, according to data from the Land Registry. 'Key turning points are emerging despite lingering macro uncertainties,' Bocom analyst Philip Tse said in a report on Tuesday. He referred to a recent sharp drop in the one-month Hong Kong interbank offered rate (Hibor), a key reference for mortgage pricing, which fell to nearly a three-year low of 0.6 per cent on May 27 from 3.95 per cent on April 30 after interventions in the currency market by the Hong Kong Monetary Authority 'We believe it will help restore confidence in the property market, boosting optimism among both homebuyers and investors, and supporting the sector's stabilisation and recovery,' he said. Lower mortgage rates would ease repayment burdens on homebuyers, effectively reducing the cost of home ownership, while offering 'a favourable opportunity for first-time buyers to enter the property market', the bank said. A recent correction in home prices, steady rental yields and potential capital gains could also help revive interest from long-term investors, it added.
Daily Mail
09-05-2025
- Business
- Daily Mail
Rightmove on track as homebuyers shrug off economic upheaval
Rightmove is targeting double-digit revenue growth this year as strong homebuyer and rental demand appears unmoved by global economic turmoil. The property portal told investors on Friday that available listings had risen to a ten-year high since the beginning of April, up 13 per cent on the same time last year. It said 2025 house price growth remains 'positive' with new buyer demand, listings and sales agreed up 5, 9 and 7 per cent, respectively, year-on-year. The positive update follows data from Halifax that showed property prices rose at their fastest pace so far this year in April, despite some forecasters expecting a fall in response to higher stamp duty. Rightmove's own research suggests house asking prices hit a record high earlier this month. Johan Svanstrom, chief executive of Rightmove, said the group was 'comparatively well insulated from the volatility that some other companies and industries are having to contend with', and could 'look forward with confidence'. Rightmove also highlighted a continued 'imbalance between supply and demand' for rental properties, which averaged 11 enquiries per property since the start of the year. While this is lower than the same time last year, it is still double the pre-Covid average. The group, which claims 80 per cent of all consumer time spent on UK property portals, sees tailwinds in further looming interest rate cuts and greater optimism among new home developers. Rightmove continues to target revenue growth of 8 to 10 per cent this year, with an underlying operating profit margin of 70 per cent. Svanstrom added: 'We're pleased to have started 2025 with good financial, operational and strategic momentum.' Rightmove shares were up 0.1 per cent to 744.6p in early trading. They have added 15 per cent since the start of the year. Anthony Codling, managing director at RBC Capital Markets, said: 'Despite the turmoil in global markets are macroeconomic uncertainty Rightmove continues to deliver a strong performance. 'Homebuyer and homemover demand for Rightmove's content appears unsated and undisturbed by higher level macroeconomic uncertainty, perhaps property portals are a welcome distraction from such concerns, fears and worries. 'Housebuilders, estate and letting agents are keen to tap into this demand for content aiming to convert it into transactions.'
