New | Hong Kong home prices drop 3pc in November, biggest plunge since 2008
Experts warn of further price declines this year
Hong Kong’s official home price index dropped 3 per cent November on month, the biggest monthly fall since 2008, as industry experts caution that weakness in the local property market is likely to persist this year.
The Rating and Valuation Department’s monthly supplement released Friday, showed the general price index for private homes fell to 293.4 in November from 302.5 a month earlier. It reflected the first time the home price index has slipped below the 300 level since May last year.
“Home prices in the secondary residential market declined for four straight months since August and fell more sharply in November,” said Buggle Lau Ka-fai, chief analyst at Midland Realty.
He expects home prices could fall another 10 per cent this year as the uncertain economic outlook weighs negatively on demand.
“Individual owners have to offer their flats at reduced prices in order to lure buyers away from primary market,” he said.
The number transactions in the secondary market dropped 17.4 per cent in 2015 compared to a year earlier, for a total of 40,875 deals.
Lau believes the number of home sale in the second-hand market could rebound to 43,000 this year. But that is still 65 per cent less than 2010’s 123,995 deals, according to Midland.