Hong Kong home prices slip in Dec, fall 7.1% in 2024

Boc Hong Kong Holdings

24/01/2025 04:35

HONG KONG, Jan 24 (Reuters) - Hong Kong's home prices
fell 0.7% in December and 7.1% in 2024, government figures
showed, as the property market struggles to find a bottom
despite interest rate cuts and government support measures.
    
    BY THE NUMBERS
    Private home prices fell 0.7% in December from the month
before, following a revised 0.03% rise in November and a 1%
increase in October, data from the Rating and Valuation
Department showed.
    Prior to October, prices had declined for five months
straight.
    For the full year of 2024, prices dropped 7.1%. 
    
    WHY IT'S IMPORTANT
    Home prices in Hong Kong, one of the world's most
unaffordable cities, have tumbled nearly 30% from a 2021 peak,
hurt initially by higher mortgage rates, easing demand as many
professionals left the territory and a weak market outlook.
    Authorities tried to prop-up the ailing sector in 2024 with
measures such as lifting all property purchase restrictions and
relaxing down payment ratios. But housing demand has remained
soft, especially in the secondary market. 
    
    MARKET COMMENTS
    Realtors forecast home prices in 2025 will rise or fall by
5%, depending on the pace of official rate cuts and the severity
of trade tensions between China and the U.S..
    "With interest rates and housing inventory coming down, the
second half of the year may see a more obvious price rise," said
Martin Wong, director of real estate consultancy Knight Frank.
    
    CONTEXT
    Major banks, including HSBC  0005.HK  and Bank of China
(Hong Kong)  2388.HK , lowered their best Hong Kong lending rate
in December 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.

 (Reporting by Clare Jim; Editing by Neil Fullick)
 ((clare.jim@thomsonreuters.com;))