Hong Kong’s home sales remain stagnant as high interest rate environment continues to suppress market
DATA REAL ESTATE
Hong Kong’s home sales remain stagnant as high interest rate environment continues to suppress market
DATA REAL ESTATE

Hong Kong’s home sales remain stagnant as high interest rate environment continues to suppress market

 

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Hong Kong’s home sales remain stagnant despite the relaxation of property market policies and two new developments in Wong Chuk Hang Station were sold amid a lukewarm response last Saturday, said Citi Research in a note.

The high interest rate environment will continue to suppress the residential market, and buyers have taken a wait-and-see stance until the US Fed’s interest rate meeting later this month, it said.

Second-hand sales of 35 large housing estates fell for three consecutive weeks, dropping by 17.5% week on week to 33 deals, which is a very low level compared to the historical average of 66 deals, it said, adding that if weekly second-hand transactions remain low, it would signal the beginning of a downward spiral in property prices, it said. 

As the overall demand in the property market is worse than the broker’s already pessimistic forecast, it expected the current round of price adjustment to last at least until the end of the year, with an estimated 6% drop in property prices in the second half of the year.