Dedicated locality research platform
Enter your email address and you will receive
a link to reset your password
Hong Kong's second-hand home prices experienced a notable decline in May, marking the first decrease since December. The dip in prices can be attributed to an oversupply of properties in the market, compounded by newly constructed flats entering the scene. With looming interest rate hikes, industry experts predict further declines in the coming months. Last year, the property market suffered a 15 percent drop due to the pandemic's impact and a weak economy.
Knight Frank's Greater China head of research and consultancy, Martin Wong, expressed the expectation of another 0.5 to 1 percent drop in the home price index for June. Wong pointed out that the market lacks positive factors to support price growth, as factors such as high interest rates, limited buying power, and an accumulation of new inventory hinder further price increases. The prospect of rising mortgage rates in the second half of the year also poses a challenge for prospective buyers, with the interest rate factor expected to persist until early next year, according to Wong.
In May, the widely observed pre-owned home price index recorded a month-on-month decline of 0.7 percent, reaching 351, the lowest level since February and the first decrease since December. On an annual basis, the index experienced a significant drop of 8.9 percent. Bloomberg Intelligence reported that Hong Kong's private home market could witness an influx of new supply until 2025. The think tank, Our Hong Kong Foundation, projected an average completion of approximately 20,200 private residential units per year from 2023 to 2025, with the peak expected in 2025 at around 20,900 units.
Centaline Property Agency, which monitors transactions in 117 major estates, reported that more sellers of lived-in homes experienced losses in the first five months of this year. Over 65 percent of house deals made between 2018 and 2022 resulted in losses, a 10.9 percentage point increase compared to the second half of last year. Centaline attributes this trend to homeowners capitalizing on the price recovery earlier this year following a 15 percent slump in 2020.
In conclusion, Hong Kong's second-hand home prices experienced their first decline since December due to an oversupply of properties and the anticipation of rising interest rates. Industry experts predict further declines, while factors such as high interest rates, limited buying power, and an accumulation of new inventory hinder price growth. The market faces challenges in the form of rising mortgage rates and an influx of new supply until 2025.
Propscience is India’s dedicated property news portal. We cover the latest events, news, trends, deals, new launches and more.
All our services and tools are completely free of cost and available 24X7!
We use cookies to give you the best possible service while using our website, please click accept and carry on browsing if you're happy with this. For more information see our Privacy Policy.
Okay, Got it!This disclaimer ("Disclaimer") is applicable to the entire Site. Upon entering the Site it is recommended that you immediately read the Terms and Conditions and Privacy Policy listed therein. Your continued usage of this Site will indicate your unconditional acceptance of the said Terms and Conditions and Privacy Policy. You hereby agree that Propscience reserves the right to modify at any time, the Terms and Conditions and Privacy Policy governing this Site without prior notification. Your usage of the Site implies that you will be bound by any such modification. You agree and acknowledge that it is your responsibility to periodically visit the Site and stay updated with the Terms and Conditions and Privacy Policy of the Website.
The information contained in this Site has been provided by Propscience for information purposes only. This information does not constitute legal, professional or commercial advice. Communication, content and material within the Site may include photographs and conceptual representations of projects under development. All computer-generated images shown on the Site are only indicative of actual designs and are sourced from third party sites.
The information on this Site may contain certain technical inaccuracies and typographical errors. Any errors or omissions brought to the attention of Propscience will be corrected as soon as possible. The content of this Site is being constantly modified to meet the terms, stipulations and recommendations of the Real Estate Regulation Act, 2016 ("RERA") and rules made thereunder and may vary from the content available as of date. All content may be updated from time to time and may at times be out of date. Propscience accepts no responsibility for keeping the information in this website up to date or any liability whatsoever for any failure to do so.
While every care has been taken to ensure that the content is useful, reliable and accurate, all content and information on the Site is provided on an "as is" and "as available" basis. Propscience does not accept any responsibility or liability with regard to the content, accuracy, legality and reliability of the information provided herein, or, for any loss or damage caused arising directly or indirectly in connection with reliance on the use of such information. No information given under this Site creates a warranty or expands the scope of any warranty that cannot be disclaimed under applicable law.
This Site provides links to other websites owned by third parties. Any reference or mention to third party websites, projects or services is for purely informational purposes only. This information does not constitute either an endorsement or a recommendation. Propscience accepts no responsibility for the content, reliability and information provided on these third-party websites. Propscience will not be held liable for any personal information of data collected by these third parties or for any virus or destructive properties that may be present on these third-party sites.
Your use of the Site is solely at your own risk. You agree and acknowledge that you are solely responsible for any action you take based upon this content and that Propscience is not liable for the same. All details regarding a project/property provided on this Site are updated on the basis of information available from the respective developers/owners/promoters. All such information will not be construed as an advertisement. To find out more about a project / development, please register/contact us to visit the site you are interested in. All decisions taken by you in this regard will be taken independently and Propscience will not be liable for any such loss in connection with the same. This Site is for guidance only. Your use of this Site - including any suggestions set out in the Site and or any use of the resources available on this Site, do not create any professional - client relationship between you and Propscience. Propscience cannot accept you as a client until certain formalities and requirements are met.
We use cookies to give you the best possible service while using our website, please accept it and continue browsing if you're happy with this. For more information see our Privacy Policy