Hong Kong home prices edge up 0.07% in November

Boc Hong Kong Holdings

27/12/2024 03:45

HONG KONG, Dec 27 (Reuters) - Hong Kong's home prices
were largely flat in November, in an early sign that the
struggling property market could bottom out after interest rate
cuts and other supportive measures.
    
    WHY IT'S IMPORTANT
    Home prices in Hong Kong, one of the world's most
unaffordable cities, have tumbled nearly 30% from their 2021
peak, hurt by higher mortgage rates, an outflow of professionals
and a weak market outlook.
    Authorities have tried to prop up the ailing sector this
year with a few rounds of supportive measures such as lifting
all property purchase curbs and relaxing down payment ratios,
but housing demand remained soft, especially in the secondary
market. 
    
    BY THE NUMBERS
    Private home prices edged up 0.07% in November from the
month before. This followed a revised 0.9% climb in October,
which was the first rise in five months.
    Prices have dropped 6.6% so far this year. 
    
    MARKET COMMENTS
    The forecasts by realtors for home prices in 2025 range from
a 5% drop to a 5% rise, depending on factors such as the pace of
more rate cuts and the state of trade tensions between China and
the U.S. 
            
    CONTEXT
    Hong Kong's major banks, including HSBC  0005.HK  and Bank
of China (Hong Kong)  2388.HK , lowered their best lending rate
in the city this month by 25 basis points for the third time
this year, following the U.S. Federal Reserve's move.   
    The territory's currency is pegged to the U.S. dollar, but
local banks make their own rate decisions depending on their
funding costs.


 (Reporting by Clare Jim; Editing by Nicholas Yong)
 ((clare.jim@thomsonreuters.com;))