New | Has the real estate bubble burst? Hong Kong flat prices return to early 2014 levels, experts say the drop will continue
Home prices for small flats in Hong Kong have lost 15-20 per cent of their value, and experts say another 10 per cent drop is possible
Hong Kong flat prices have plunged to the early 2014 level as panicky individual owners dump some small apartments in the city’s New Territories which where hardest hit by the market turmoil, says industry experts.
Prospective buyers with a budget of HK$3 million will see more choices now than five months ago during the market peak in September last year.
Home prices for small flats in Tuen Mun, Tin Shau Wai and Yuen Long have lost 15 to 20 per cent in value. But agents believe the falling trend has spread to other parts of the city given the rising number of negative equity for houses and defaults on new projects could depress the appetite by buyers.
“Prices are likely to fall a further 10 per cent in view of slack demand,” said Alvin Cheung Chi-wan, associate director at Prudential Brokerage. He believes the price correction could come faster and sharper as a rash of negative news spooked end users and investors.
“Individual owners have become more realistic and willing to cut prices at least 15 per cent to attract buyers ...”
Louis Chan Wing-kit, the managing director of Centaline Property Agency’s residential department, said the number of transactions at 10 housing estates that the firm monitored have increased largely because of more units being offered at lower prices.
