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Hong Kong property sales plunge again as high interest rates, economic malaise dent demand
- There is likely to be little relief for the sagging market in the coming months as interest rates are tipped to remain high, says Ricacorp Properties
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Hong Kong’s property sales sank again in June, with the number of private residential units changing hands down by more than a third from the previous month, according to data from one of the city’s largest real estate agencies.
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The total number of property sales – encompassing everything from homes, car parks and shops to industrial units and offices – came to 4,939 as of June 27, according to a tally by Midland Realty. That is about a third lower than the 7,361 transactions recorded in May.
The value of those transactions came to HK$38.14 billion (US$4.9 billion), the Midland data show, a 39 per cent fall from May.
Official data for June property sales is likely to come out this week.
There is likely to be little relief for the sagging market in the coming months as interest rates are tipped to remain high in the third quarter of the year, said Derek Chan, head of research at Ricacorp Properties. He predicted transactions in the second half will be a fifth lower than in the first six months.
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June’s figures represent the second straight monthly fall in property transactions after an initial surge that came in the wake of the government’s lifting of all property restrictions in February.
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