Investments in Hong Kong’s offices, shops and homes slowed to a standstill as Covid-19 outbreak adds to market’s woes
- February’s transactions fell 13 per cent from last year to 3,572 deals, the lowest monthly tally in four years, comprising both newly launched property and lived-in homes
- On the high end of the market involving offices, shops or homes exceeding HK$100 million in value, only 17 deals changed hands last month
Investments in Hong Kong’s real estate are almost at a standstill, as the global coronavirus outbreak exacerbated the slumping sentiment from half a year of anti-government protests and the ongoing US-China trade war.
February’s transactions declined 13 per cent from last year to 3,572 deals, the lowest monthly tally in four years, comprising both newly launched property and lived-in homes, according to estimates by Cushman & Wakefield. On the high end of the property market involving offices, shops or homes exceeding HK$100 million (US$12.87 million) in value, only 17 deals changed hands last month, the lowest since 2009 while the average deal size shrank 44.1 per cent to a decade low of HK$235.3 million.
“There is a lack of incentives for transactions,” said Tom Ko, executive director of capital markets at Cushman & Wakefield. “Landlords want to wait until the coronavirus situation eases before selling their property and have stronger holding power due to low interest rates.”
The data underscores the market’s gloomy outlook, as the bull run in the world’s most expensive real estate market stumbled after many months of anti-government protests sapped appetite. Now, as the coronavirus outbreak shows no signs of letting up, few buyers dare to venture into sales rooms or commit to big-ticket purchases.
