Hong Kong Pre-Owned Property Prices Hit Eight-Year Low
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Pre-owned homes for sale displayed at an real estate agent on June 26, 2024.
Hong Kong’s pre-owned home prices plummeted to their lowest in nearly eight years, with June’s private property index dropping 1.24% from May and a sharp 13.1% year-on-year decline, despite a brief rise after the government lifted property controls.
After the Hong Kong government canceled property market controls at the end of February, the city’s property market experienced a brief resurgence in March and April, with the pre-owned private residential price index rising 1.06% and 0.29%, respectively.
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- Hong Kong’s pre-owned home prices hit an 8-year low, with a 1.24% drop in June and a 13.1% year-on-year decline.
- Small to medium-sized residential units led the price drop, while rent prices rose, hitting a 4.5-year high with a 1.61% increase in the first half of 2024.
- Despite falling home prices, future rental market growth is expected due to international demand, potentially stimulating investor interest and property turnover.
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Who’s Who
- Centaline Property Agency Ltd.
- Centaline Property Agency Ltd. is a prominent real estate agency in Hong Kong. Louis Chan, its vice chairman and chief executive of the Asia Pacific residential department, noted the significant discounts developers are offering to attract buyers. Chan also expressed cautious optimism for the second half of the year, suggesting that if interest rates fall, local funds might move from bank deposits to the property market, potentially impacting home prices.
- Ricacorp Properties
- Ricacorp Properties is involved in the Hong Kong property market and provides market research insights. Their research department manager, Chen Hai-chao, predicts continued declines in property prices, anticipating a 1% drop in July and a further 2% in the third quarter of 2024, reflecting a cautious outlook on the market's near-term performance.
- Colliers Hong Kong
- According to the article, Kathy Lee, head of research at Colliers Hong Kong, predicted a 5% to 10% drop in property prices in 2024, driven by significant discounts from developers.
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What Happened When
- End of February 2024：
- The Hong Kong government canceled property market controls.
- March 2024：
- The pre-owned private residential price index rose by 1.06%.
- April 2024：
- The pre-owned private residential price index rose by 0.29%.
- May 2024：
- The pre-owned private residential price index fell.
- June 2024：
- Hong Kong’s private property index dropped 1.24% from May 2024 and experienced a 13.1% year-on-year decline.
- June 2024：
- The rental index reached a 4.5-year high, with a 1.61% increase in rents during the first half of 2024.
- As of June 2024：
- 19,300 residential units had been completed but remained unsold, with potential new home supply exceeding 100,000 units.
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