Small flats in Hong Kong see drop in prices and rents in August
Rents and prices for small flats fell in August, according to figures from the Rating and Valuation Department that show weakening demand amid an economic slump and concerns interest rates may be about to rise.
The department's monthly supplement, released on Thursday, showed flats of less than 431 sq ft in the New Territories registered the worst performance, with prices falling 1.9 per cent to HK$10,400.96 per square foot, and rents easing 1.05 per cent to HK$26.19 per square foot.
"It is the first time both rents and prices have declined for small flats since October 2013," Midland Realty said.
But the department said its overall rental and price indices for private homes climbed to record highs in August, although the pace of growth had slowed.
The August rental index rose 0.74 per cent month on month to 176.1, and the price index edged up 0.3 per cent to 305.
Separately, prices at 50 estates tracked by Ricacorp Properties fell 1.1 per cent to HK$12,106 per square foot last month.