10 months and counting: Hong Kong home prices worsen in February to the lowest level since September 2016
- The lived-in home-price index fell 1.7 per cent in February versus 1.2 per cent in January, according to the Rating and Valuation Department
- Home prices, which have fallen for 10 consecutive months, have lost a cumulative 13.7 per cent since April 2023
Hong Kong home prices in February fell for the 10th month to the lowest level in seven and a half years, after a sharper than expected month-on-month slump.
Home prices have lost a cumulative 13.7 per cent since April 2023.
The price decline last month preceded the government’s lifting of all property cooling measures amid slower than expected economic growth and a high-interest rate environment that has dented demand for property.
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“Factors such as high interest rates, insufficient purchasing power and backlog of listings have caused property prices to continue to decline,” said Martin Wong, director and head of research and consultancy for Greater China at Knight Frank. “In the short term, second-hand property prices will continue to weaken due to the impact of primary sales.”
The price trend for secondary homes is likely to be “L-shaped”, Wong said, adding that he expects prices to decline 3 per cent to 5 per cent in the first half of the year before stabilising in the second half.
