New | Hong Kong property sales plummet to lowest in 25 years and the worst is on the way
Slump in one of the world’s priciest markets hits home
Property sales in Hong Kong plunged to 3,123, the lowest January figure recorded by the government since 1991 and the worst is yet to come, property agents said.
The transaction volume represented a 41 per cent decline month-on-month or a 62 per cent dive year-on-year as developers slow down on new launches in the wake of bearish sentiment and ahead of the Chinese New Year holidays.
Total transaction value fell 43.5 per cent month-on-month to HK$20.69 billion, the lowest amount hit since February 2009.
Midland Realty chief analyst Buggle Lau expected total sales will drop further next month to below 3,000 deals.
READ MORE: Hong Kong sees spurt in negative-equity home owners as property prices tumble
The market is plagued by sour sentiment in the wake of a rash of negative news including the return of negative equity owners, interest rate hikes and the withdrawal of government land sales, say analysts.
Sales of homes fell to 2,025, down 50 per cent month-on-month and 68 per cent year-on-year, according to Land Registry.