Reversal of home price expectations among respondents; Young singletons aspiring for home ownership

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HONG KONG, CHINA -�Media OutReach�- 29
April�2019�- Citi Hong Kong announced today the results of its survey
on residential property ownership in Hong Kong for Q1 2019. The survey found
that the percentage of respondents who expected home prices in Hong Kong to
rise in the next 12 months increased over the preceding quarter, and so did the
percentage of respondents showing an interest in property ownership,
particularly among the young and single. There was also a higher percentage of
respondents who took a neutral stand on whether this is a good time to purchase
a home, reflecting a wait-and-see attitude among potential home buyers.

Expectations
reversed: more respondents expecting home prices to rise in the next 12 months

The percentage of respondents who expected home prices in
Hong Kong to rise in the next 12 months was up drastically from 18% in Q4 2018
to 42% in Q1 2019. In comparison, the percentage of respondents who expected
home prices to fall was down significantly from 57% in Q4 2018 to 24% in Q1
2019.

Since the second half of 2018, the market had been battered
by multiple headwinds, including the US-China trade war, interest rate hikes,
and a weakening yuan. However, with these news gradually discounted during Q1
2019, the expectations among local citizens of the future property price trend
were reversed.

Base: All Respondents
* Figures may not add up to 100% due to rounding

Stronger
overall interest in home buying; Young singletons desirous of a starter home

Despite the prevailing expectations of rising home prices,
the respondents showed a stronger interest in buying a home. 26% of the
respondents expressed a very or rather strong interest in buying a property in
Q1 2019, a record high percentage since the survey was first conducted. 37% of
those aged between 21 and 29 expressed interest in home buying, higher than the
comparative figure of 19% recorded in Q4 2018. One third of the respondents aged
between 30 and 44 have the same interest.

According to the results, 31% of the single respondents also
expressed a very or rather strong interest in buying a property, reflecting a
particularly keen desire for home ownership among the young and single.

Base: All Respondents

A slightly lower percentage of respondents said it is not a good time to
purchase a home now

Still representing a simple majority, 57% of the respondents
in Q1 2019 felt that it is not a good time to purchase a home, down from 67% in
Q4 2018. 39%
of the respondents took a neutral stand in Q1 2019 on whether this is a good
time to purchase a property, reflecting a wait-and-see attitude among many
potential home buyers.

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Base: All Respondents

Josephine Lee, Head of Retail Bank, Citibank
Hong Kong, said, "The results show that local citizens' view on the property
market has reversed as they expect home prices to rise in the coming year. Given the expectations of rising
home prices, local citizens are likely to become less confident in their home
affordability. To make their dreams of home ownership come true, it is
important for potential home buyers to consider financial services best
tailored to their needs, with a comprehensive wealth management plan in place."

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Citibank
commissioned The University of Hong Kong Social Sciences Research Centre to
conduct the survey, interviewing over 500 Hong Kong respondents by phone in
March 2019. Since 2010, Citibank has
conducted a quarterly survey on the housing market to assess the current state
of homeownership in Hong Kong, gauge public opinion on the subject of
homeownership and public expectations in terms of future housing price trends.

Source: Citibank Q1 2019 Residential Property Ownership Survey