Hong Kong dwelling costs slip in Dec, fall 7.1% in 2024


HONG KONG (Reuters) – Hong Kong’s dwelling costs fell 0.7% in December and seven.1% in 2024, authorities figures confirmed, because the property market struggles to discover a backside regardless of rate of interest cuts and authorities help measures.

BY THE NUMBERS

Non-public dwelling costs fell 0.7% in December from the month earlier than, following a revised 0.03% rise in November and a 1% improve in October, knowledge from the Ranking and Valuation Division confirmed.

Previous to October, costs had declined for 5 months straight.

For the total yr of 2024, costs dropped 7.1%.

WHY IT’S IMPORTANT

House costs in Hong Kong, one of many world’s most unaffordable cities, have tumbled almost 30% from a 2021 peak, harm initially by increased mortgage charges, 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 reminiscent of lifting all property buy restrictions and enjoyable down cost ratios. However housing demand has remained delicate, particularly within the secondary market.

MARKET COMMENTS

Realtors forecast dwelling costs in 2025 will rise or fall by 5%, relying on the tempo of official price cuts and the severity of commerce tensions between China and the U.S..

“With rates of interest and housing stock coming down, the second half of the yr might even see a extra apparent value rise,” mentioned Martin Wong, director of actual property consultancy Knight Frank.

CONTEXT

Main banks, together with HSBC and Financial institution of China (Hong Kong), lowered their finest Hong Kong lending price in December by 25 foundation factors for the third time this yr, following the U.S. Federal Reserve’s transfer.

The territory’s foreign money is pegged to the U.S. greenback, however native banks make their very own price selections.

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