HK Oct home prices ease for 2nd month after record high

Hong Kong

HONG Kong private home prices, among the most expensive in the world, dropped for the second consecutive month in October, official data showed on Friday (Nov 26), softening from a record high as potential buyers turned more cautious before a policy meet.

The prices eased 0.9 per cent in October from September, compared to a revised 0.03 per cent fall in September.

Home prices had risen for 8 months before that to hit historical highs, levels that were last seen in May 2019 before the pandemic and anti-government mass protests in the city.

Property agents said that buyers turned more cautious before the policy address delivered in October, worried that some drastic housing policy would be introduced to curb the sky-high property prices.

But after little substantial changes were announced, buyers became active again, with the transaction volume in November increasing up to 40 per cent, they added.

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At the centre of plans to tackle the city's housing shortage announced by leader Carrie Lam last month was a long-term goal to build a Northern Metropolis on the border with the mainland's technology hub of Shenzhen, covering 300 sq km.

"After all, supply is still limited in Hong Kong, and the economic and employment recovery has helped to support the property market," said Derek Chan, head of research at realtor Ricacorp.

He expected November home prices would be flat or post a small gain, and the gain may extend in December if the border with mainland China reopens.

Investors have been envisioning a much delayed reopening of the border will boost the local economy and property demand. Local media reported that the reopening could likely to come in early December but the Hong Kong government has not given a precise timing. REUTERS