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Hong Kong property
Business

Hong Kong property transactions sink to lowest level since April as third wave of coronavirus weighs on sentiment

  • Overall transaction volume slumped 34.2 per cent month on month in August to HK$45.59 billion, the lowest since HK$38.35 billion in April
  • One individual incurred a loss of HK$38 million (US$4.9 million) on the sale of a house in Wong Chuk Hang

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The third wave of the Covid-19 outbreak dampened property transactions in Hong Kong. Photo: Sun Yeung
Lam Ka-sing

Hong Kong’s property market took a hit from the third wave of coronavirus outbreak, with transactions falling to a four-month low in August.

It was a particularly disastrous month for sellers, with one individual incurring a massive loss of HK$38 million (US$4.9 million) on the sale of a house in Wong Chuk Hang.

Overall transaction volume, including homes, commercial and industrial properties and car parking spaces, sank 34.2 per cent month on month in August to HK$45.59 billion, according to Land Registry data released on Wednesday. It was the lowest since the HK$38.35 billion worth of deals in April.

“The rebound in local coronavirus infections in early July, when the government tightened social distancing measures, dragged housing market sentiment for the worse,” said Wong Leung-sing, senior associate director of research at Centaline Property Agency.

Hong Kong’s economy has taken a beating from the pandemic and remains mired in a recession. Last month retail sales in the city fell 23.1 per cent year on year for the 18th month in a row.

On Wednesday, the Hong Kong Monetary Authority asked banks extend their loan repayment holidays for small businesses for another six months until April 2021 to help the city’s struggling retail, property and service industries amid the lockdowns and consumption slumps caused by the coronavirus pandemic.
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