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Lam Ka-sing

An exodus of expatriates from Hong Kong has continued to pressure the housing market in the city, particularly those in Tung Chung that embodies the mood in the industry. Are they cheap enough to lure bargain hunters?
Prices in Tung Chung in New Territories, favoured by airline executives due to its proximity to the city’s international airport, have weakened by 5 per cent since the Lunar New Year, according to Centaline Property. They are expected to depreciate over the next quarter on stock market losses and recession fears.
In Tseung Kwan O, Sai Kung and Kennedy Town, more sales advertisements are citing “emigration” or “urgent sale” as the reason to exit the market, adding to the anecdotes reported last month of owners willing to sell at losses in Yuen Long and Tuen Mun.
A Cathay Pacific stewardess last week sold her 388-sq ft flat at Coastal Skyline for HK$5.88 million (US$751,231) to return home to India, according to market data. The transaction marked the lowest price for a one-bedroom unit in the housing estate since June 2021.


“The buyer was optimistic about the housing market and bought it for leasing,” said Tommy Wong, principal district sales manager at Centaline Property Agency. Now is “definitely” a good time to snap up bargains amid the “market volatility”.
That remains to be seen as Hong Kong’s infamous Covid-19 protocols, including border closures and up to three weeks of quarantine, have become a bane for foreign companies operating in the city. The expat exodus, on top of the emigration of BN (O) passport holders, has compounded the slide in home prices across the city.
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Optimism about the housing market is unlikely to return just yet, as Hong Kong attempts to control an unprecedented surge in Covid-19 infections and related deaths two years into the pandemic. Besides, there has been a major negative wealth effect this quarter as the Hang Seng Index of stocks skidded to its lowest level in six years.


Prices in Tung Chung have declined by 5 per cent since the Lunar New Year and may fall by another 5 per cent through June because of these reasons. About 10 foreign clients sold their homes or had leases expire in Tung Chung last month, Wong said, contributing to a more than 10 per cent jump since the Lunar New Year, he added.
The seller of the Coastal Skyline unit “wanted to leave before three vaccinations become mandatory” for people to move about freely in the city in June, Wong said. The stewardess chose not to renew her contract and decided to sell, having already fully repaid its mortgage, he added.
To be sure, the market has suffered a greater fall before. Hong Kong’s average home prices fell 11.8 per cent in 2003, the year the city was gripped by the severe acute respiratory syndrome (Sars) outbreak. In the current downturn, lived-in home prices have only retraced 6 per cent from a peak in August last year, according to Centa-City Leading Index compiled by Centaline.




Frankie Liu, who is the sales director for Sai Kung area at Century 21 Goodwin, also noted that foreign clients are packing up their bags, including Cathay Pacific pilots who could no longer fly, or other executives whose employers are relocating or downsizing.
He noted the social unrest, Covid-19 outbreaks and economic recession have contributed to a 10 per cent drop in home prices in Sai Kung already, another locality favoured by expatriates. The pool of potential clients for town houses has shrunk to 10 per cent from 30 per cent, he added.
Rita Wong, who was born in Hong Kong but grew up in Canada, is moving to a “more stable” Singapore with her boyfriend in July to take up a new job after more than a decade living in Hong Kong.
She did not renew her lease on a HK$15,500 a month, 460-sq ft flat in Tseung Kwan O Plaza when it expired in December. She has been staying in a hotel for HK$14,000 a month while finalising her relocation plan.
The strict quarantine rules in Hong Kong “absolutely” made things difficult and occasional panic buying of groceries “just got ridiculous” as they exacted tremendous mental stress to the citizens.
“Yeah, a bit sad to leave, but at the same time, glad to leave,” said Wong, who teaches maths at an international school. “I wish Hong Kong can get out of this situation.”


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