Home prices in Hong Kong fall 0.6% in October – ET RealEstate

HONG KONG: Private home prices in Hong Kong eased 0.6% in October, weighed down by a bigger drop for large apartments, official data showed on Thursday.

The fall last month compared to a revised 0.4% gain in September, according to data from the Rating and Valuation Department. Prices have risen 0.4% so far this year.

Prices in one of the world’s most expensive property markets had been resilient despite the COVID-19 outbreak and political uncertainties, supported by strong demand and low interest rates.

Property agents expect new developments and relaxed social distancing measures in October to support sales and prices in the short term, although the outlook for 2021 is for further weakness.

Rating agency S&P said this week it expected Hong Kong home prices to fall a further 5% in 2021, due partly to rising unemployment.

Total transaction volume in the secondary market so far this year has surpassed the full-year volume in 2019, realtor Centaline said. It expects 2020 transaction value to exceed last year’s to become the third-highest on record.

Hong Kong leader Carrie Lam said on Wednesday the government had no plan to adjust stamp duty rates for residential properties, citing tight housing supply and prices “beyond the reach of the average households”.



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Home prices in Hong Kong ease 0.5% in July – ET RealEstate

HONG KONG: Hong Kong private home prices eased 0.5% in July, the first drop since April, as one of the world’s most expensive property markets continued to be pressured by the coronavirus pandemic and political uncertainties.

The drop in July compares to a revised no change in June. Supported by strong demand and low interest rates, prices have still gained 1.5% so far this year.

The financial centre was hit by a new wave of coronavirus infections in July, pushing housing transaction volumes to a four-month low in August. The real impact on property prices will be reflected in August and September due to a lag effect, agents said.

The market’s recovery was also capped by Beijing’s imposition of a national security law in the Chinese-ruled city on June 30, sparking a fresh exodus among residents.

“The drop is smaller than expected, it’s mainly because large-sized properties have out-performed,” said Thomas Lam, executive director of Knight Frank.

He expected the market correction will continue, citing weak purchasing power in an economic recession.

Realtor Centaline noted the secondary housing market became active again in late August as the pandemic eased in the city.

“Government easing (of) social-distancing measures also provide a positive signal,” it said.



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