Hong Kong’s lived-in home prices complete third year of decline in worst run since 2003
Prices of second-hand homes fell in December, snapping a two-month rebound, and have dropped 27 per cent over the past three years
Hong Kong’s lived-in home prices fell in December to complete three straight years of setbacks, as geopolitical and inflation risks clouded the prospects for more interest-rate cuts by global central banks.
Prices in the secondary market declined 0.65 per cent last month, following gains in October and November, according to data published by the Rating and Valuation Department. Prices weakened 7.13 per cent for the year, following a 15 per cent drop in 2023 and a 7 per cent loss in 2022.
The 27 per cent cumulative drop over the past three years is the second-longest slump since official monthly records began in 1993. The 58 per cent crash from 1997 to 2003, during the Asian financial crisis and the dot-com blow-up, was the worst in Hong Kong’s housing market history.
Donald Trump’s presidential election win in November “caused confusion” to interest-rate outlook, said Derek Chan, head of research at Ricacorp Properties. “It quietened down the market and forced owners of second-hand properties to lower their prices.”