Hong Kong’s housing market sentiment cools as US-China trade war escalates
- Agents say homeowners in New Territories have reduced asking prices by 5 per cent in the last two weeks
- More than 160 buyers have forfeited deposits on new flats after choosing to renege on their deals
Hong Kong’s property market sentiment is souring. Homeowners are slashing asking prices while buyers are forfeiting deposits on new flats amid the escalating US-China trade war.
In New Territories, which has an ample supply of new flats, about 10 per cent of the homeowners have started lowering prices by an average of 5 per cent in the past two weeks to woo buyers, according to agents.
“The US-China trade war has become white-hot,” said Sammy Po, chief executive of residential division at Midland. “Since the external environment remains uncertain, quite a number of potential buyers dare not place bets. The wait-and-see sentiment in the market has intensified.”
More than 160 buyers have walked away from their new flat purchases year to date, according to Register of Transactions documents of the developments as of Sunday.
For instance, three buyers of flats in Maya by Nouvelle in Yau Tong walked away from their deals on May 12, forfeiting deposits totalling HK$1.73 million (US$220,400).
Notably, sales of new homes have been disappointing for two straight weekends, with Maya by Nouvelle in Yau Tong selling just two flats on Saturday, since an escalating US-China trade war has made potential buyers hesitant.