Economy

Stocksak: Hong Kong home prices fall 2.1% in September, and are down 8% this Year


© Stocksak. FILE PHOTO – An aerial view of Choi Hung’s public housing estate and other residential structures, with the Lion Rock peak as the background, in Hong Kong (China), June 3, 2021. This picture was taken by a drone on June 3, 2020. REUTERS/Joyce Zhou

HONG KONG, Stocksak – September saw a 2.1% drop in Hong Kong’s private home prices. This is compared to a month ago and is the lowest since January 2019. Official data was released on Thursday. The decline was caused by rising interest rates.

After a 1.9% drop in August, the September home price drops in one of the most expensive housing markets in the world last month followed by a revised 1.9% decrease in August.

September’s property price index was 362.1, a decrease of 9% from September’s peak of 398.1. The first nine months of the year saw a 8.1% drop in home prices in the financial center.

Last month, Hong Kong banks increased their best lending rate by 12.5 percentage points. This was the first rate increase in four years.

A bleak economic outlook and rising mortgage costs have exacerbated homeowner pessimism. However, home prices for the full year are expected to fall around 10%, which is the first drop since 2008.

Martin Wong, head of research and consulting at Knight Frank Greater China real estate consultancy, said that prices will continue to trend down in short-term, partly due to a stock market crash that pushed the main to its lowest level since April 2009 this year.

He said that transaction volumes were expected to drop to a nine year low for the entire year.

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Stocksak Editorial

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