Hong Kong slips to 22nd spot globally in home price inflation as property curbs bite, survey finds
- Hong Kong tumbles from the world’s hottest market as home price gains ease to 5.8 per cent last year, according to Knight Frank’s global index
Hong Kong’s housing market has slipped well down the list when it comes to the pace of annual percentage gains among major cities worldwide, according to the latest survey by Knight Frank.
The city fell to 22nd place from the No 1 spot a year ago among 56 global markets tracked, as average home prices tumbled 6.2 per cent in the final three months of 2018, according to the Knight Frank global house price index.
For the 12 months through December, Hong Kong home prices rose 5.8 per cent, easing from a 15.7 per cent gain in the prior year.
“Hong Kong’s slide was an expected consequence of: a further tightening of housing policy in June 2018; a volatile stock market; a strengthening currency; and, the global trade dispute weighing heavily on buyer sentiment,” Knight Frank said.
The moderation in price growth underscored the effectiveness of cooling measures rolled out by the government over the past few years, including a higher stamp duty on certain transactions and an increase in the down payment requirement. The Hong Kong Monetary Authority also raised loan rates and ordered banks to tighten lending rules.
Slovenia topped the global rankings with a 15.1 per cent rise in home prices in 2018. The mainland ranked third with a 10.7 per cent increase.