Hong Kong home prices drop faster in July

Sun Hung Kai Properties

28/08/2024 04:14

HONG KONG, Aug 28 (Reuters) - Hong Kong's private home
price declines accelerated in July as they fell for the third
month in a row, hurt by potential buyers waiting on the sideline
for more rate cut signals. 
    Home prices in one of the world's most expensive property
markets fell 1.9% in July from June, following a revised 1% drop
in June, official data showed on Wednesday.    
    Demand has lost steam since May after a short-lived bounce
thanks to the lifting of all property purchase curbs in
February, as realtors said much of the pent-up homebuying quest
has been sated while property developers launched new flats at
steep discounts to boost sales. 
    The prices have tumbled 25.4% from their 2021 peak, hitting
the lowest since September 2016, hurt by higher mortgage rates,
an outflow of talent and a weak market outlook.
    Realtors expected prices would continue to soften until
banks in the city start to cut interest rates, which is expected
to happen late this year or early next year.      
    Hong Kong's de facto central bank keeps its policy in
lock-step with the U.S. Federal Reserve as the city's currency
is pegged to the greenback, but local banks make their own rate
decisions depending on their funding costs. 

 (Reporting by Clare Jim; Editing by Shri Navaratnam)
 ((clare.jim@thomsonreuters.com;))