Hong Kong home prices fall for a fourth month in March
[HONG KONG] Hong Kong’s home prices slipped for a fourth month in March, government figures showed on Monday (Apr 28), as the ailing property market faced more economic headwinds.
Private home prices fell 0.5 per cent in March from the month before, following a revised 0.6 per cent decline in February, data from the Rating and Valuation Department showed.
The March price index was the lowest since July 2016.
Prices down
Home prices in Hong Kong, one of the world’s most unaffordable cities, have tumbled nearly 30 per cent from a 2021 peak, hurt by higher mortgage rates, a weak economic outlook, and poor demand as many professionals have left the territory.
Authorities tried to prop up the sector last year, lifting all curbs on property purchases and relaxing down payment ratios, but housing demand has remained soft.
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Realtors forecast home prices in 2025 could rise or fall by 5 per cent, depending on the pace of official rate cuts and the severity of trade tensions between China and the US.
Eddie Kwok, the executive director of real estate consultancy CBRE, said investment appetite was again negatively affected in April due to global uncertainty, and it could lead to a slight decrease in home prices in the next few months as potential buyers take a wait-and-see approach.
Knight Frank director Martin Wong said the US might lower interest rates again soon to stimulate the economy, and Hong Kong would follow suit and benefit the property market.
The government in February cut the stamp duty for small home transactions. Homes with values of HK$3 million to HK$4 million (S$507,100 to S$676,100) now have to pay just HK$100 in stamp duty, instead of up to HK$60,000. Property agents said the move could encourage first-time buyers and lift home transactions by 5 to 10 per cent.
Major banks lowered their best Hong Kong lending rate in December by 25 basis points for the third time last year. The territory’s currency is pegged to the US dollar, but local banks make their own rate decisions. REUTERS
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