Hong Kong’s lived-in home prices fall to the lowest level since January 2019, with analysts predicting further decline
- Hong Kong’s secondary home prices fell 2.1 per cent in September, taking the year-to-date slump to 8.1 per cent
- Home prices are expected to fall further for the rest of the year and test the 10 per cent level, analysts say
Hong Kong’s lived-in home prices fell 2.1 per cent in September, declining for the fourth straight month and hitting the lowest level since January 2019, according to the latest government data.
So far this year, the gauge has dropped 8.1 per cent.
Analysts expect the index to retreat by another 2 percentage points for the rest of the year as potential homebuyers take a cautious approach in anticipation of further interest rate hikes and poor stock market sentiment. A 10 per cent decline by the end of the year would push prices down to levels last seen in December 2017, when the index stood at 354.5.
“The equity market is weak, and with the possible interest rate hike in November we expect home prices to correct by about 1 to 2 percentage points towards the end of the year, bringing the full year correction to about 10 per cent,” said Buggle Lau Kai-fai, chief analyst at Midland Realty.