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Hong Kong property: home prices slump to lowest since January 2017 as high interest rates undercut demand
- Hong Kong’s lived-in home prices fell by about 1.4 per cent, the eighth straight monthly decline, Rating and Valuation Department data shows
- Overall secondary home prices fell 6.7 per cent in 2023, versus a much sharper slump than the 15 per cent decline a year earlier
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Hong Kong’s lived-in home prices fell for a second year in a row to the lowest in seven years, as the city’s property market continues to be weighed down by high interest rates and a lumbering Chinese economy.
Prices fell about 1.4 per cent in December, the eighth consecutive monthly decline, pulling the official index to a level last seen in January 2017, according to data compiled by the Rating and Valuation Department. The widely watched index ended the year at 312.1, compared with 316.5 in November.
Overall secondary home prices fell 6.7 per cent in 2023 versus a much sharper slump of 15 per cent the previous year, the data showed. Homes with saleable area of less than 430 sq ft retreated the most at 8.7 per cent, while units with areas of between 753 sq ft and 1,065 sq ft declined the least at 4.95 per cent.
“The market sentiment is still weak, as there is limited good news in the market,” said Martin Wong, director and head of research and consultancy for Greater China at Knight Frank.
Hong Kong’s lived-in homes segment is likely to endure more pain in the first half, with prices likely to drop by as much as 5 per cent before stabilising in the second half of the year, Wong said.
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