Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Hong Kong home prices drop 2.1% in Sept, down 8% this year

Published 10/27/2022, 12:14 AM
Updated 10/27/2022, 12:15 AM
© Reuters. FILE PHOTO: An aerial view shows Choi Hung public housing estate and other residential buildings with the Lion Rock peak in the background, in Hong Kong, China June 3, 2021. Picture taken June 3, 2021 with a drone. REUTERS/Joyce Zhou

© Reuters. FILE PHOTO: An aerial view shows Choi Hung public housing estate and other residential buildings with the Lion Rock peak in the background, in Hong Kong, China June 3, 2021. Picture taken June 3, 2021 with a drone. REUTERS/Joyce Zhou

HONG KONG (Reuters) - Hong Kong private home prices fell 2.1% in September from a month earlier to the lowest since January 2019, official data showed on Thursday, dragged down by rising interest rates and a pessimistic economic outlook.

The drop in home prices last month in one of the world's most unaffordable housing markets followed a revised 1.9% fall in August.

The property price index was at 362.1 in September, down 9% from an all-time peak of 398.1 in September last year. Home prices in the financial hub have fallen 8.1% in the first nine months of this year.

Hong Kong banks raised their best lending rate by 12.5 basis points last month, the first rate hike in four years.

Rising mortgage costs and a bleak economic outlook have deepened pessimism among homeowners, while home prices for the full-year are expected to drop around 10%, the first fall since 2008.

© Reuters. FILE PHOTO: An aerial view shows Choi Hung public housing estate and other residential buildings with the Lion Rock peak in the background, in Hong Kong, China June 3, 2021. Picture taken June 3, 2021 with a drone. REUTERS/Joyce Zhou

Martin Wong, real estate consultancy Knight Frank Greater China head of research and consultancy, said he expects prices to continue to trend down in the short term, partly hurt by a stock market rout that pushed the main Hang Seng Index to its lowest since April 2009 this week.

Transaction volumes were set to fall to a nine-year low for the full year, he added.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.