HK home prices cool for second straight month as investment conditions worsen

01-Nov-2018 Intellasia | Reuters | 6:26 AM Print This Post

Hong Kong private home prices fell for the second straight month in September, as a global stock market rout and an intensifying Sino-US trade war soured sentiment in the property market.

The fall last month followed the a decline in August, the first in 29 months in one of the world’s least affordable property markets.

In September, prices eased 1.4 percent from August, government data showed, accelerating a decline from August’s revised 0.08 percent slip.

However, prices are still elevated having risen 10.2 percent so far this year, and surging 14.1 percent in year-on-year terms in September, according to Reuters’ calculations based on an index compiled by Hong Kong’s Rating and Valuation Department.

Ultra low interest rates, limited housing supply and large capital flows from mainland Chinese buyers have helped push housing prices up more than 200 percent over a decade, prompting repeated warnings from authorities about the risks of an asset bubble.

The hot real estate prices have angered many residents and prompted the city’s government to set aside plots of land for public housing and propose a vacancy tax on empty new homes to discourage developers from hoarding.

A flat of 60 square metre (646 sq ft) on Hong Kong Island cost an average of HK$10.87 million ($1.39 million) in September, according to official data.

An end of the ultra-low interest rate era has also pressured the property market.

https://uk.reuters.com/article/uk-hongkong-economy-property/hong-kong-home-prices-cool-for-second-straight-month-as-investment-conditions-worsen-idUKKCN1N50AP

 


Category: Hong Kong

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