Hong Kong home prices little changed in May
Private home prices edged up only 0.03 per cent in May from the month before, following a revised 0.5 per cent rise in April that ended four months of decline, data from the Rating and Valuation Department showed.
The prices have dropped 0.9 per cent so far this year to their lowest level since 2016.
Home prices in Hong Kong, one of the world's most unaffordable cities, have tumbled nearly 30 per cent from a 2021 peak, hurt by higher mortgage rates, a weak economic outlook, and poor demand as many professionals have left the territory.
Authorities tried to prop up the sector last year, lifting all curbs on property purchases and relaxing down payment ratios, but housing demand has remained soft.
The one-month Hong Kong dollar interbank rate HIBOR, which many mortgage plans are linked to, hit a fresh three-year low last week, making mortgage rates more affordable for home buyers.
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Realtors forecast home prices in 2025 could rise or fall by 5 per cent, depending on the pace of official rate cuts and the severity of trade tensions between China and the United States.
Martin Wong, director of real estate consultancy Knight Frank, expected the property market to bottom out in the second half due to more rate cuts.
Morgan Stanley last week said the Hong Kong residential market could be at the onset of an up-cycle that could last for four to five years, because of improved home affordability, more home buyers from mainland China, coupled with less land supply, and low mortgage rates. REUTERS
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