Hong Kong home prices in four-month losing streak, fell at fastest pace in nine months in September as protests intensified

Home prices in Hong Kong, the world’s least affordable housing market, declined for a fourth month in September, dropping by their fastest pace in nine months.

Prices dropped by 1.8 per cent last month, their biggest decline since a 2 per cent drop in December 2018, and have lost 4.1 per cent in total during their four-month losing streak, according to the city’s Rating and Valuation Department.

Hong Kong has been rocked by five months of anti-government protests, but September witnessed an increase in vandalism, arson and street fights. Transport, particularly MTR services, were also disrupted. Police increased its use of tear gas and made more arrests as well. In this atmosphere, the decline in home prices accelerated – September’s decline was larger than the 1.4 per cent drop recorded in August.

“It was chaotic at that time. The social atmosphere was tense,” said Derek Chan, head of research at Ricacorp Properties, who attributed the decline to the US-China trade war as well. “It is the highest decline in the last nine months,” he added.

Overall sales also hit a new low for 2019 in September, shrinking 15.6 per cent month on month to 3,447 units, according to the latest Land Registry data.

Chan, however, said he expected the extent of decline to taper off in the coming months, thanks to a relaxation in mortgage requirements announced by Hong Kong leader Carrie Lam Cheng Yuet-ngor this month.