Hong Kong home prices drop for third month in July, down 1.1%

HONG Kong private home prices eased 1.12 per cent in July from June, the third monthly fall in a row, official data showed on Tuesday (Aug 29), as homebuyer sentiment was deterred by rising interest rates and a weak economic outlook.

The drop in home prices last month in the financial hub – one of the most expensive markets in the world – followed a revised 1.05 per cent fall in June, according to data released.

Home prices have retreated again since May, after a short-lived bounce early this year from a 15 per cent decline in 2022.

Major developer Henderson Land said in its earnings statement last week the property market would be “quite depressed” in the second half if the government does not propose any new measures, because the downward trend for housing prices in the secondary market had “become obvious”.

The industry has been urging the government to relax more property market curbs to stimulate transactions, but the government has repeatedly said it was not an appropriate time for more adjustments, with property prices still relatively high amid a housing shortage.

A new home launch this month by a major developer owned by tycoon Li Ka-shing, CK Asset, at the lowest prices in seven years, shocked the market and could intensify a price war in the financial hub, realtors said.

SEE ALSO

China's Country Garden says US$100 billion Forest City project in Johor on track

Evergrande loses US$2.2 billion in value as trade resumes, extends creditor voting

Evergrande delays restructuring votes; shares down 79% after 17-month halt

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

Transaction volume in August is expected to fall for a fifth month to a eight-month low, according to property agent Centaline. REUTERS