Hong Kong September home prices drop 1.7% to near 6.5-yr low

Henderson Land Development Co

27/10/2023 04:24

HONG KONG, Oct 27 (Reuters) - Hong Kong private home
prices dropped 1.7% in September to the lowest since April 2017,
official data showed on Friday, as rising interest rates and a
bleak economic outlook weighed on homebuyer sentiment.
    The September drop in home prices in the financial hub, one
of the most expensive markets in the world, followed a revised
1.8% fall in August, according to data.
    Five monthly falls in a row have erased gains made this
year, and realtors expect prices will fall up to 5% for the full
year.
    Hong Kong's leader, John Lee, announced on Wednesday in an
annual policy address that stamp duty would be halved to 7.5%
from 15% for second home buyers and non-citizen buyers with
immediate effect, to help revive a sector that is a pillar of
the city's economy.
    Martin Wong, head of Greater China research and consultancy
at Knight Frank, said it would take time for the lower stamp
duty to have an impact on purchasing power.
    "With the market lacking other positive news, home prices
will still face large pressure in the rest of this year," Wong
said.
    Other new adjustments to help the property market included 
allowing some home owners to sell their properties after two
years without incurring hefty duties.
    Some analysts, however, said the measures were only a
band-aid solution that would be unlikely to reverse the downward
trend in prices.
    Wong said property developers had been cutting prices
aggressively in order to clear inventory.  

 (Reporting by Clare Jim; Editing by Robert Birsel)
 ((clare.jim@thomsonreuters.com;))