Hong Kong’s November home prices drop for the 7th month
HONG Kong private home prices in November fell for the seventh month in a row to their lowest since February 2017, official data showed on Wednesday (Dec 27), hurt by weak buying sentiment amid a higher interest rate environment.
Home prices in the financial hub, one of the most expensive markets in the world, dropped 2 per cent in November from the previous month, following a revised 2.1 per cent fall in October, according to the data.
Prices have dropped 5.6 per cent in the first 11 months of the year.
Analysts and realtors expect Hong Kong home prices could bottom in middle of next year, in anticipation of mortgage rate cuts.
Property agencies Hong Kong Property Services and Midland forecast prices will rise 3 to 5 per cent and 5 per cent, respectively, for the full year of 2024.
Brokerage Jefferies expects a low to mid-single-digit drop in the next 6 months but overall a stable 2024, while UBS has forecast home prices could drop another 10 per cent in 2024.
Hong Kong’s monetary policy moves in lock-step with the United States, as the city’s currency is pegged to the greenback in a tight range of 7.75 to 7.85 per US dollar.
As the market interpreted the Fed’s rate decision this month as a slightly larger extent of rate cuts next year than previously expected, it expects Hong Kong banks could start lowering rates in the second half of next year when interbank funding costs ease. REUTERS
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