Hong Kong home prices drop for third month in July, down 1.1%

Henderson Land Development Co

29/08/2023 03:28

HONG KONG, Aug 29 (Reuters) - Hong Kong private home
prices eased 1.12% in July from June, the third monthly fall in
a row, official data showed on Tuesday, as homebuyer sentiment
was deterred by rising interest rates and a weak economic
outlook.
    The drop in home prices last month in the financial hub, one
of the most expensive markets in the world, followed a revised
1.05% fall in June, according to data released. 
    Home prices have retreated again since May after a
short-lived bounce early this year from a 15% decline in 2022.  
  
    Major developer Henderson Land  0012.HK  said in its
earnings statement last week the property market would be "quite
depressed" in the second half if the government does not propose
any new measures because the downward trend for housing prices
in the secondary market had "become obvious".   
    The industry has been urging the government to relax more
property market curbs to stimulate transactions, but the
government has repeatedly said it was not an appropriate time
for more adjustments with property prices still relatively high
amid a housing shortage. 
    A new home launch this month by another major developer CK
Asset  1113.HK , owned by tycoon Li Ka-shing, at the lowest
prices in seven years shocked the market and could intensify a
price war in the financial hub, realtors said.     
    Transaction volume in August was expected to fall for a
fifth month to a eight-month low, according to property agent
Centaline. 

 (Reporting by Clare Jim; Editing by Michael Perry)
 ((clare.jim@thomsonreuters.com;))