Bears gather as data shows Hong Kong home prices retreat for second week after peak in May
- Sentiment has become more risk averse amid questions on the political and economic outlook for the city, analysts say
- Prices of older homes dropped 1.43 per cent to 186.26, for week ended June 9, according to Centa-City Leading Index
Hong Kong home prices were down for a second consecutive week through Sunday, after hitting a record at the end of May, evidence that may suggest a broader correction is underway, according to experts.
The Centa-City Leading Index, a home price gauge compiled by Centaline Property Agency, showed prices for lived-in homes dropped 1.43 per cent to 186.26, for the week ended June 9.
“The uptrend of home prices has been hindered,” said Wong Leung-sing, senior associate director of research at Centaline. “The impact of the escalation of the China-US trade war has emerged, and … in July we will see recent uncertainties in the city further impact the housing market.”
The Centaline data, released on Friday, covers transactions that coincide with Sunday’s protest march against a controversial extradition bill, but not the violent street protests on Wednesday.
Property analysts said the housing market would face headwinds as potential buyers turned risk averse amid growing questions on the political and economic outlook for the city.