The Hong Kong government’s Census and Statistics Department recently released the latest data on the real estate industry confidence. According to the survey results for the “business situation outlook” in the second quarter, 10% of surveyed companies expect better conditions compared to the previous quarter, while 88% expect no change, and 2% anticipate worse conditions. The net balance (better minus worse) is a positive 8%, an improvement from the previous quarter’s negative 6%, indicating changes following the government’s announcement of easing measures.
The positive or negative values of the “net balance” reflect the general level of optimism or pessimism among respondents, rather than the magnitude of expected changes.
The proportion of businesses expecting an increase in business has risen to 10% (from 2% the previous month), while those expecting a decrease have decreased to 2% (from 10% the previous month), with the net balance (increase minus decrease) at +8% (compared to -8% the previous month).
In terms of employment, the proportion of surveyed companies intending to hire more staff stands at +16% (compared to +11% the previous quarter), with a net balance (hiring minus layoffs) of +15% (compared to +10% the previous quarter).
Regarding price trends, the net balance (raising prices minus lowering prices) stands at +5% (compared to -5% the previous quarter).
The Census and Statistics Department also released data on the profitability and financial conditions of the real estate industry, with net balances (good minus poor) of +66% (compared to +44% the previous quarter) and +76% (compared to +61% the previous quarter), respectively.
Additionally, in terms of accessing credit, the proportion of companies finding it easy compared to those finding it difficult has a net balance of +65% (compared to +65% the previous quarter).