You are here

Hong Kong home prices ease for 4th straight month in September

nz_hkhousing_311082.jpg
Hong Kong private home prices dropped at a faster pace in September, marking the fourth consecutive month of decline, according to government data released on Thursday, as the financial city was hit by a political turmoil.

[HONG KONG] Hong Kong private home prices dropped at a faster pace in September, marking the fourth consecutive month of decline, according to government data released on Thursday, as the financial city was hit by a political turmoil.

The price drop of 1.8 per cent, in one of the world's least affordable property markets, compared with August revised decrease of 1.4 per cent.

"The fall percentage was in line with expectation," said Thomas Lam, executive director of Knight Frank. "I expect the index may still correct downward in the next two or three months."

Mr Lam also expected prices to continue falling next year for another 5 per cent, but a low interest rate environment will provide support.

HSBC on Thursday said it will cut its Hong Kong best lending rate by 0.125 percentage point, following US Fed's rate cut.

The Asian financial hub has been hit this year by the US-China trade dispute and five months of often violent anti-government protests.

However, the Chinese-ruled city's sky-high property prices have stayed relatively resilient compared with the tourism and retail sectors amid the latest crisis.

Hong Kong's home prices have still recorded a rise of 5.9 per cent so far this year.

Analysts and property agents, however, expect the home prices to flit between a gain of 5 per cent and a drop of 5 per cent over the remainder of this year.

In September, a flat of 60 square metres (646 square feet) on Hong Kong Island cost an average of HK$10.4 million (S$1.8 million), according to official data.

The head of Hong Kong's central bank called on the public to manage financial risks prudently on Thursday, as the local economy faces its first recession in a decade.

Hong Kong's leader Carrie Lam expanded borrowers' power mid-this month by reducing the size of down payments required for home purchases for small-to-medium flat, resulting in a surge in transaction volumes in the secondary market in the last two weeks despite a slowing economy.

REUTERS

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes