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Hong Kong July house prices fall to lowest since early 2020 | business and economy

Home prices, one of the world’s most affordable housing markets, fell 1.6% last month.

Hong Kong’s private house prices fell to their lowest level since February 2020 in July, according to official data. Homebuyers turned bearish on rising interest rates and an uncertain outlook.

House prices in one of the world’s most affordable housing markets fell 1.6% last month from the previous month, data showed, and was revised to 0.9% in June. The property price index fell to 376.1 in July.

Home prices in the financial hub have fallen 4.5% so far this year.

“With no positive news in the market and the pandemic escalating again, many buyers and sellers are waiting on the sidelines…trading volumes are declining,” said Knight Frank of Greater China. Martin Wong, head of research and consulting, said.

Financial hubs under economic pressure COVID-19 measures considered the toughest in the worldsaw new cases of coronavirus recover to nearly 10,000 on Sunday.

Wong expected prices to continue to fall in August and September, but said they could stabilize once Hong Kong and mainland China eased travel restrictions.

City finance chief Paul Chan said the government has no plans to abolish cooling measures or intervene in the market, regardless of short-term fluctuations.

To attract buyers, many property developers have launched new sales at discounted prices.

Hong Kong interest rates tend to keep pace with US rates as the currency is pegged to the US dollar, but have lagged US rates in recent months.

The market expected the city’s major banks to raise their maximum lending rates next month if the US Federal Reserve raises rates again.

All banks held their highest lending rates in this year’s U.S. rate hikes, but some lenders, including HSBC and Standard Chartered Bank, have slashed housing prices this month as interbank rates surged more than 28 basis points. Increased loan lending rate limits by 25 basis points. – Highest of the month.

https://www.aljazeera.com/economy/2022/8/29/hong-kong-july-home-prices-fall-to-lowest-in-2-1-2 Hong Kong July house prices fall to lowest since early 2020 | business and economy

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