Hong Kong's property market may remain stuck in bear territory for a long time, says star analyst Andrew Look.

And commercial buildings will be more affected by falling prices, as smaller indebted developers dispose off their assets and oversupply grows, he adds.

His gloomy predictions came as a survey showed Hong Kong workers need a 6 percent raise to give up hybrid work arrangements, a dilemma that's expected to prompt more companies to reduce space and dampen office rents.

Look said residential and office prices could fall further, while shop prices may have bottomed out.

Look said Hong Kong's role as an intermediary between the United States and China has faded due to deteriorating relations between the rival superpowers, and added that the city may not immediately follow suit if US started to cut interest rates.

Meanwhile, a Bloomberg Intelligence survey of 350 people in Hong Kong found 27 percent asked for a raise with the majority demanding a pay increase of 6 percent or more, if their employers require them to work in the office five days a week. Another 24 percent said they would change jobs to secure flexible work arrangements.

Companies may adopt hybrid working arrangements to attract talent while cutting floor space, which could lead to rents falling by at least 6 percent in 2024, Bloomberg Intelligence analysts led by Patrick Wong said in a note published yesterday.

That's after rents dropped at a similar pace annually over the past three years, the research showed.