Hong Kong’s luxury homes to see price declines of up to 20 per cent next year amid fewer mainland buyers, says JLL

Knight Frank, however, expects prices in this segment to decline by only 5 per cent in 2020

Mass residential prices too are predicted to fall by up to 15 per cent as job fears affect buyers’ confidence, says JLL

2-MIN READ2-MIN

General view of Mount Nicholson on The Peak, one of Hong Kong’s most expensive neighbourhoods for property. Photo: Martin Chan

Published: 8:00am, 13 Dec 2019Updated: 8:00am, 13 Dec 2019

Luxury property prices in Hong Kong will decline by up to 20 per cent next year after falling 4.7 per cent in this year, as Beijing continues to maintain capital controls and China’s economy feels the impact from the US-China trade war, according to international property consultancy JLL.

“The economic slowdown in mainland China and Hong Kong will dampen housing demand, particularly in the luxury residential market that relies on demand from China,” said Joseph Tsang, chairman of JLL in Hong Kong.

Rival Knight Frank, however, expects prices in this segment to decline by only 5 per cent in 2020 and transaction volumes to remain low.

“Luxury homes on The Peak, Mid-Levels and Island South are rare products like antiques. These rich owners have holding power and may just offer 5 per cent discount but are unlikely to slash prices significantly,” said Thomas Lam, executive director of Knight Frank.

Residential property prices in Hong Kong are likely to come under further pressure next year. Photo: May Tse

JLL meanwhile expects mass residential property prices to fall between 10 and 15 per cent next year, after slipping 2.5 per cent in the second half of this year.