November rise in Hong Kong used home prices proves to be short-lived

The prices of lived-in Hong Kong homes rose in November after five months of declines, the city’s Rating and Valuation Department said on Tuesday.

But the 1.78 per cent increase, driven largely by a relaxation in the city’s mortgage policy, has proved to be short-lived, property agents said after December recorded declining numbers.

Prices in Hong Kong’s secondary market jumped to 384.1 last month, according to an index compiled by the Rating and Valuation Department.

“It is the sharpest growth in the past seven months,” said Derek Chan, head of research at Ricacorp Properties. He attributed the earlier than expected rebound to easing measures announced mid-October by Hong Kong leader Carrie Lam Cheng Yuet-ngor. The number of sales of used homes jumped to a six-month high of 5,336 transactions in November, as a result.

The number of property transactions – including homes, offices, industrial units, shops and car parking spaces – have, however, dropped 48 per cent to 3,473 in the December 1 to 27 period, compared with 6,701 in November, Midland Realty said.

The sales of new flats dropped 75 per cent to 562 deals in this period, while transactions involving lived-in homes dropped 37 per cent to 2,392 despite efforts by the government to ease mortgage refinancing rules.