Hong Kong lived-in homes see valuations drop as fifth Covid-19 wave takes hold
- Valuations will head south in February, as home prices in late January dropped and may be down this month too, Midland executive says
- Surge in infections is likely to affect the usual seasonal boom that follows Lunar New Year
The valuations of Hong Kong’s lived-in homes are expected to head south as a fifth Covid-19 wave linked to the Omicron variant takes hold and deals plunge because of fewer viewings, brokers said.
Banks may reduce valuations by 1 to 2 per cent in February and by another 1 per cent next month, with midscale estates like Kornhill Garden and Taikoo Shing expected to bear the brunt.
“The valuations will head south in February, as home prices in late January dropped and may be down this month too,” said Sammy Po, CEO of residential in Hong Kong and Macau at Midland Realty.
This surge in infections is likely to affect the usual seasonal boom that follows Lunar New Year. Flat viewings are expected to go down or be suspended altogether, especially if owners are not in a rush to sell.
Eric Tso, chief vice-president at mReferral Mortgage Brokerage Services, echoed the view that overall bank valuations may drop 2 to 3 per cent in the coming month.