New | Hong Kong home prices expected to be down 5 per cent from their peak by Chinese New Year
Ricacorp Properties survey of 50 Hong Kong housing estates finds that November prices fell on average 1 per cent from October, with some estates seeing a drop of up to 7.6 per cent month on month
Hong Kong’s home prices have continued their downward momentum with average home prices at 50 housing estates falling for three consecutive months, a private survey shows.
November prices on average fell 1 per cent from October but some estates reported a drop of as much as 7.6 per cent month on month, according to a survey of 50 housing estates by property agent Ricacorp Properties.
“There is a consensus expectation of a price fall. Prospective home buyers will not enter [the market] if flat owners do not slash prices,” said Derek Chan, head of research at Ricacorp Properties.
With transaction volumes still low, last month’s decline does not reflect the full state of the market.
Chan said prices would fall gradually, predicting a 1 per cent decline this month and another 1 per cent in January.
“Average prices will drop to HK$11,609 per square foot before Chinese Lunar New Year, about 5 per cent below the market’s peak of HK$12,243 per sq ft in August this year,” he said.
One of the hardest hit estates was Amoy Gardens in Ngau Tau Kok, which recorded four transactions in November against five in October, with last month’s transaction price of HK$11,733 per sq ft down 7.6 per cent from the prior month.
