Hong Kong home prices extend rout in October as protests escalated and economy mired in recession
- Prices in secondary market fell by 1.3 per cent on average, according to Rating and Valuation Department
- Prices have declined by 5.2 per cent since the end of May amid city’s worst political crisis and a technical recession
Home prices in Hong Kong fell for a fifth month in October after an escalation in anti-government protests kept investors at bay despite efforts by the government to shore up the market, an official report shows.
Prices of homes in the secondary market fell by 1.3 per cent on average, according to an index compiled by the Rating and Valuation Department. The slide brings the rout since the end of May to 5.2 per cent, reflecting the turmoil in the city’s ranked as the world’s least affordable housing market.
The political fallout and a prolonged US-China trade war have dented sentiment in the marketplace, with the economy slipping into a technical recession last quarter and the stock market suffering its worst dubbing in four years. Since then, fighting between hard core protesters and police have descended into chaos and violence at university campuses.
“The social movement still persisted during that time, so home prices have kept falling,” said Derek Chan, head of research at Ricacorp Properties. “We expect the reading after November to improve following the relaxation in mortgage requirements.”
