Owners in Yuen Long and North Point begin to sell properties at a loss to escape the worsening social turmoil
- Homeowners in Yuen Long and North Point, which have seen some violent clashes in the ongoing protests, have reduced their prices between 5-10 per cent, say agents
Property owners in Yuen Long and North Point, two battlefield districts that have seen the most violent clashes in Hong Kong’s 10-week old protest rallies, are selling their flats at losses as they bail out of the market amid the worsening civic unrest.
Prices may dip 3 per cent at housing estates across Hong Kong in August, agents said. They added sellers in Yuen Long in the New Territories have reduced prices by about 10 per cent, while homeowners in North Point to the east of Hong Kong Island were asking for 5 per cent less.
The property bull run in Hong Kong, which resumed this year after a five-month breather, was stopped dead in its tracks as growing opposition to an unpopular extradition bill piled on to the economic effects of the year-long US-China trade war to deter buyers from committing to large-scale purchases. The Centa-City Leading Index compiled by Centaline fell 1.1 per cent from late June to the week ended August 4.
“The social movement has not showed any signs of lessening in August, and instead is intensifying, which adds to concerns about the impact of the trade war on the economy,” said Ricacorp Properties’ chief executive Willy Liu. “Clouded by negative sentiments, sellers are forced to give larger discounts to attract buyers.”
What began as a peaceful march by an estimated 1 million people on June 9 to oppose a controversial extradition bill has descended into mayhem, as riot police clashed with protesters who laid siege to police stations, shopping centres, commercial space and even the Hong Kong airport.