Signs prices are cooling in Hong Kong’s secondary housing market

Hong Kong’s second-hand housing market appears to be cooling as owners offer discounts amid concerns over a potential interest rate rise next month, according to agents.

Overall prices rose about 2.5 per cent in June to September, representing a gradual easing in the rate of appreciation, according to Wong Leung-sing, associate director of research at Centaline Property Agency,

Further slowing in the pace of price growth is expected, he said.

“Despite the increase, we see a weaker growth as compared with the 6.5 per cent rise in second quarter and 6 per cent increase in the first quarter,” Wong said.

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Wong attributed the softening in the market to concerns about the broader economy amid stock market volatility and a growing number of personal bankruptcies.

Since June, the average transaction value for flats sized between 753 square feet to 1,075 sq ft – which fall in the Rating and Valuation’s category of class C units - were HK$11.39 million, up 0.6 per cent from the second quarter, according to Centaline data.