Staff Reporter
Hong Kong’s housing market continues to struggle as home prices dipped by 0.7% in December and are projected to fall by 7.1% throughout 2024, according to government statistics. This downturn occurs despite recent interest rate cuts and various government support measures aimed at stabilizing the market.
The latest data from the Rating and Valuation Department reveals that private home prices decreased by 0.7% in December compared to the previous month. This follows a slight revision to a 0.03% rise in November and a 1% increase in October.
Notably, prior to October, the market had experienced five consecutive months of price declines.
Home prices in Hong Kong, recognized as one of the world’s most unaffordable cities, have dramatically declined by nearly 30% since reaching their peak in 2021. This drop has been driven by several factors, including rising mortgage rates, decreased demand as many professionals left the region, and a bleak market outlook.
In response to the struggling housing sector, authorities implemented measures in 2024 to stimulate the market, such as lifting all property purchase restrictions and relaxing down payment ratios. However, demand for housing has remained weak, particularly in the secondary market.
Looking ahead, real estate experts predict that home prices in 2025 could fluctuate by 5%, influenced by the pace of official interest rate cuts and ongoing trade tensions between China and the U.S.
“With interest rates and housing inventory decreasing, the second half of the year may witness a more significant price increase,” stated Martin Wong, director of real estate consultancy Knight Frank.
