Hong Kong’s secondary home market suffers as buyers focus on attractively priced new projects
- Prices of some secondary homes in popular housing estates have fallen by over 30 per cent recently, recent transactions show
- Secondary home prices will continue to fall as they have not found a floor yet, says Centaline’s Wong
Prices of decades-old secondary homes in Hong Kong, which were driven up in the past two to three years, have slumped by more than 30 per cent in recent days as they lose appeal among buyers.
Home seekers have become more selective amid a market correction, preferring to buy new flats that are more resilient in these conditions, analysts said.
“Old homes built more than 30 or 40 years ago could have up to 50 per cent lower market value than new flats in the same neighbourhood, as they lack modern facilities,” said Albert Wong, the honorary chairman of AAHorses Mortgage Brokerage Services, who expects Hong Kong property prices to fall by as much as 20 per cent this year and next.
Buyers who rushed to buy in 2019 and 2020 had pushed up secondary market prices, he said, adding that the prices of these units will drop to a more realistic level as borrowing costs rise.
