Hongkongers expected to spend US$21.9 billion on new homes this year, the lowest since 2015, says Centaline

Centaline expects the number of new homes sold in the whole of 2020 to be down 27 per cent to 15,000, the lowest for seven years

As developers offer their new projects at more attractive prices, home seekers have recently been flocking to the primary market

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Hongkongers are expected to spend HK$170 billion (US$2.19 billion) on new homes this year. Photo: K. Y. Cheng

Published: 9:30am, 30 Nov 2020Updated: 11:48am, 30 Nov 2020

Corrected [11:48am, 30 Nov, 2020]

[11:48am, 30 Nov, 2020]
Corrects currency conversion to US$21.9 billion in first paragraph

Hongkongers are expected to spend HK$170 billion (US$21.9 billion) on new homes this year, the lowest since 2015, according to Centaline Property Agency.

As a fourth wave of coronavirus cases adds to the woes of a property sector already hit hard by economic recession and rising unemployment, analysts expect a bumpy ride next year too.

“The sharp fall in sales is largely due to the poor market sentiment in the first half. Developers faced immense challenges to catch up the sales in the second half,” said Wong Leung-sing, senior associate director of research at Centaline.

Developers pulled in about HK$145 billion from January to November, said Centaline.

In 2015, the total transaction value amounted to HK$167.14 billion.

With just a month left to the end of the year, Centaline expects the number of new home sales for the whole of 2020 to be down 27 per cent to 15,000, the lowest for seven years. In 2013, there were 9,753 transactions for new homes.