Hong Kong homeowners face losses of nearly HK$10 million in second-hand market as price decline continues
- In January, the secondary market saw 419 loss-making transactions, the highest since March 2023
- A three-bedroom flat in Ho Man Tin recently sold for 38 per cent below what the seller paid in September 2018, a HK$9.62 million (US$1.2 million) loss
The real estate market has been smothered under a softening economy and high interest rates. The recent stock market slump has further dampened market sentiment, leading flat owners who want to cash in to slash prices to secure sales, property agents say.
One example is Mantin Heights in Ho Man Tin, where a three-bedroom, 865 sq ft flat recently sold for HK$15.85 million (US$2 million), equivalent to HK$18,324 per square foot. This price represents a significant drop of 38 per cent, or HK$9.62 million, from what the seller paid in September 2018. Property agent Centaline Property Agency facilitated the transaction.
In January, the secondary market saw 419 loss-making transactions, the highest since March 2023 and equal to 27.77 per cent of total second-hand transactions recorded for the month.
Additionally, 89 loss-making cases have been recorded so far this month, or 32.48 per cent of total secondary-market sales, according to Derek Chan, the head of research at property agent Ricacorp Properties.