The head of the Real Estate Developers Association, Stewart Leung, on Sunday said the local property market would gradually rebound after second-hand property prices in August dropped to their lowest point in eight years.

Speaking on a TV programme, Leung said Hong Kong’s stock market had benefited from policies to stimulate the Chinese economy which were rolled out by the central authorities last month. He also said the property market relied heavily on the city’s economy.

“If the economy is slow, there is no way the property market will thrive. The stock market is a starting point. If the stock market performance improves, other things will see a chance. When people earn money, they will be able to buy things, and of course buying a house is one of the most important events in life. If the economy can recover, the property market will be able to improve,” Leung said.

He said it would take some time for the property market to see an improvement after policies are implemented.

“Stock markets are the most sensitive as their exchanges can be done very quickly. But for the property market, buildings cannot be built immediately after we think about building something,” Leung said.

Leung said he earlier predicted property prices to increase by five to 10 percent this year because he believed Hong Kong’s economy would be able to recover faster than other places due to its smaller size.

He added that property rolled out by developers would raise their prices in the short term as market prospects improve.

When asked whether he would buy a property, Leung said he does not speculate and that purchasing a flat depends on whether the buyer can afford the price.