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Hong Kong home prices at lowest level since 2017 as high interest rates deter buyers, weigh on transactions
- Hong Kong’s widely watched lived-in home price index fell to 332.1 in September, wiping out the gains made so far this year
- Secondary market transactions fell to 2,088 in September, the lowest so far this year, according to Midland Realty
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Hong Kong’s lived-in home prices fell by nearly 1.75 per cent month on month in September to their lowest since April 2017, as elevated interest rates have dampened sentiment and pushed buyers to the sidelines, according to the latest official data.
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The widely tracked index compiled by the Rating and Valuation Department slipped to 332.1 last month, erasing this year’s gains. The gauge’s plunge in September was also the deepest of the year.
The index has lost 16.58 per cent from its peak of 398.1 in September 2021.
Last month, 2,088 second-hand units changed hands, the lowest monthly total this year, according to data compiled by Midland Realty. Some 1,530 lived-in homes have been sold this month as of Wednesday.
“It’s [price decline] in line with our expectations,” said Rosanna Tang, executive director and head of research for Hong Kong at Cushman and Wakefield. “We forecast residential prices to fall in a range of 0 to 5 per cent year on year for 2023.”
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