Hong Kong home prices drop faster in July
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
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
