Hong Kong, Singapore prime property prices to see big declines as high rates weigh on sentiment: Savills
- Hong Kong is likely to see the biggest price decline of up to 10 per cent and as much as 3.9 per cent in Singapore, according to a Savills report
- Prime residential property in the 30 cities monitored by Savills to see overall price growth of 0.6 per cent this year versus 2.2 per cent in 2023
Hong Kong and Singapore are among major global cities that will see residential property prices fall this year, as high interest rates and a challenging economic landscape continue to dampen sentiment, according to a report by Savills World Research.
Of the 30 global cities monitored in the Savills World Prime Residential Index, 17 will see price falls, with Hong Kong projected to see the highest decline of up to 10 per cent and Singapore is likely to post a drop of 3.9 per cent.
Overall, positive prime residential price growth of 0.6 per cent is projected for the year, compared with 2.2 per cent in 2023.
“Inflationary pressures will gradually abate, necessitating ‘higher for longer’ interest rates and the likelihood of a sustained period of weak global growth,” said Kelcie Sellers, an associate at Savills World Research.
Other cities projected to see price declines this year include London, New York, San Francisco, Los Angeles and Seoul. Capital value growth in these cities is expected to be slower than in 2023.
