Hong Kong’s second-hand home prices fall to lowest since March 2017, with skid set to continue through 2024’s first half
- Lived-in home prices fell by 2.16 per cent in October, the second steepest monthly decline of 2023
- The loss for the full year may hit 6 per cent, followed by another 3 per cent to 5 per cent drop in the first half of 2024, property analyst says
The Rating and Valuation Department’s gauge of lived-in home prices slumped to 321.4 – only a whisker higher than 321.2 recorded in March 2017 – from 328.5 in September, according to the latest data, released on Tuesday.
So far this year, second-hand home prices have retreated by about 4 per cent. They have lost 19 per cent from the index’s record high of 398.1 in September 2021. The month-on-month October decline is shallower than the 2.4 per cent drop in September, which is the year’s steepest, according to the latest data.
“In terms of sales volume, 2023 is just slightly better than 2022, and we expect to have 48,000 transactions this year,” said Martin Wong, director and head of research and consultancy for Greater China at Knight Frank. “We expect overall home prices to drop 5 per cent to 6 per cent over 2023 and another 3 per cent to 5 per cent in the first half of 2024.”
For the second half of 2024, home prices are likely to remain flat, Wong said.
As of Monday, 33,767 second-hand homes changed hands so far this year, compared with 36,974 in 2022, according to data compiled by Midland Realty.