Two Hong Kong banks cut valuation of used homes as civic unrest threatens to knock property bull run off its footing
- HSBC and Bank of China (Hong Kong) have cut valuations for used homes in New Territories and Kowloon by up to 3.6 per cent, according to data on their websites
- The move, the first since valuations were slashed by 20 per cent in October 2018, could push some homebuyers into negative equity
Two of Hong Kong’s biggest commercial banks have cut their valuation of pre-owned homes in several housing estates in anticipation of declining prices, after the city was rocked over the past month by a record number of street protests.
HSBC and Bank of China (Hong Kong), two of the city’s three currency printing banks, cut their valuations for used homes in the New Territories and Kowloon by up to 3.6 per cent, according to data on their websites.
“Valuations have dropped as a result of the political [upheaval in Hong Kong] since early June,” said Centaline Mortgage Broker’s managing director Ivy Wong Mei-fung, who provides financing services at one of the city’s largest real estate agencies.
“Home price corrected in May … the home market was downbeat and homeowners were willing to cut prices. The overall pricing of some estates fell.”