Among them were 200 who fell into an “affluent segment” with liquid assets of HK$1.5 million (US$190,000) or above.
Almost three quarters of the wealthier respondents expressed an interest in buying a property, versus 62 per cent of their less well-heeled peers. Just 15 per cent of those in the affluent category believe house prices will go down in the next six months to two years, the survey found.
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The optimism of the survey is at odds with Citibank’s own appraisal of the property market. It predicts a 10 per cent drop in home prices this year because of high interest rates and an abundance of unsold units in the primary market.
“The survey results reflect positive sentiment among the public toward the property market after all the cooling measures were lifted in February, boosting optimism among homebuyers,” said Josephine Lee, head of Citigold and cards and unsecured lending sales, Citibank Hong Kong.
The results come after Hong Kong’s second-hand home prices increased for the first time in almost a year. The average price of a lived-in unit rose by 1.06 per cent in March, according to official data, the first gain in 11 months.
The index climbed to 305.7 from 302. 5 the previous month, according to the Rating and Valuation Department (RVD).
Sales of new and second-hand homes shot up by 115 per cent to 8,551 units from March, data showed.
Although Citibank has forecast a drop in home prices, Lee said high-net-worth individuals are not affected by short-term fluctuations in property prices, as most of them have either bought a house to improve their quality of life or intend to hold into it as a long-term investment.
Citibank predicts that the US Federal Reserve will cut interest rates four times starting in July this year, by 0.25 per cent each time, with the rate ceiling falling to 4.5 per cent.
“However, local banks may not follow the prime rate cuts immediately, so it is estimated that interest rates will not be adjusted significantly until after 2025,” Lee said.