Hong Kong property deals slump to 6-month low as market-boosting measures wear off
Overall real estate transactions in August fell 10 per cent month on month to 4,729 units, while value declined 20 per cent to US$4.4 billion
Hong Kong’s property market lost some of its zip in August, with overall property transactions slumping to the lowest since February when cooling measures were still in place.
Real estate deals, comprising new and lived-in homes, office units, car parking slots, shops and industrial spaces, fell 10 per cent month on month to 4,729 units, and declined by 33 per cent from six months ago, according to the Land Registry data released on Tuesday.
Overall deal value fell about 20 per cent month on month to HK$34.3 billion (US$4.4 billion), but was up by more than 50 per cent compared with February, the data showed.
On an year-on-year basis, the volume in August was 1.5 per cent higher, while the value was 1.6 per cent lower.
Home sales slipped for the fourth consecutive month to 3,654 units, a 1.9 per cent decrease from July and a six-month low since 2,375 were sold in February. The value amounted to HK$28.47 billion, a 20 per cent slump from HK$35.7 billion in July.
“Home sales transactions fluctuate with the market sentiment regarding interest rates, resulting in periods of both activity and inactivity,” said Derek Chan, head of research at Ricacorp Properties.
Property registrations will continue to remain at low levels until the interest rate cuts are implemented, he added.
