HONG KONG, Dec 28 (Reuters) – Hong Kong personal residence costs dropped 3.3% in November to the bottom since August 2017, official knowledge confirmed on Wednesday, as its housing market – probably the most unaffordable on this planet – is about to submit the primary annual drop since 2008.
Costs within the Asian monetary hub had been weighed down by a weak financial outlook and rising mortgage prices, following a critical COVID outbreak at first of the 12 months.
November’s fall in residence costs got here after a revised 2.7% drop in October. Dwelling costs in Hong Kong have fallen 13.8% within the first 110 months of the 12 months.
Transaction quantity for the 12 months is anticipated to fall to a decade low however it may have a small bounce subsequent 12 months after authorities raise travelling restrictions with mainland China, property brokers mentioned.
For 2023, actual property consultancy Cushman & Wakefield expects residence costs to be 0-5% decrease than this 12 months, with costs stabilizing within the second half after an anticipated peak of rates of interest.
One other consultancy, JLL, expects costs to fall one other 10% subsequent 12 months for the mass market. It mentioned a excessive stage of stock for builders on account of a surge in unsold items this 12 months would drive builders to supply reductions.
The promoting costs of some lately launched initiatives had been 7% to 13% decrease than the typical value of the secondary market in the identical space, JLL added.
Final week, main developer CK Asset Holdings (1113.HK), owned by the town’s richest man Li Ka-shing, gained a residential land plot within the downtown Kai Tak space for a value a lot decrease than market expectations. Surveyors mentioned the ground value represented an eight-year low within the space.
Reporting by Clare Jim; enhancing by Robert Birsel
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