According to the Hong Kong Property Review, the recent price of housing and rentals reached the lowest in nearly 30 months. Experts predicted that it is very difficult to tell how long this will last.

On August 29, the department released its latest data. Hong Kong’s property price index recorded its biggest drop in five months (down 1.8%). 

According to Luo Jiacong, an economist, the current property prices in Hong Kong have fallen and show no sign of stopping. Following the decline in real estate prices after 1997, they can decrease by 10% in a year.

Luo Jiacong said in an interview with an online platform, True Words, that although the current decline is not sharp, the Hong Kong real estate market has no hope.

At the same time, to promote sales, developers are willing to lower prices, resulting in comparable prices in the primary and second-hand markets.

Jiacong continued that some Hong Kong immigrants want to sell their property to avoid paying taxes.

Previously, the drop was tens of thousands Hong Kong dollars, but now it has dropped to even a hundred or hundreds of thousands Hong Kong dollars.

According to Jiacong, the reason that house prices have reached their lowest point is the decline of the external environment, 5–10% annually.

This forecast is not a small number, but compared to records from 1997 to 2003 – It has fallen by more than 60% over six years or 10% in a year. 

Luo Jiacong added that the real estate and stock markets are gradually declining.

A businessman and former member of the Legislative Council of Hong Kong, Tian Beijun, has been in the real estate investment business for many years. He believes that the Hong Kong property market is not optimistic about the prospects for sales and rentals.

He told Hong Kong 01 that the public does not notice the downward trend, as it considers the sale of new buildings acceptable. After all, while the technique of selling new properties is effective in attracting buyers, that of used properties is another matter.

Beijun took the rental properties of Wantai Group as an example. He pointed out that the number of customers and rents has decreased rapidly in the past six months.

In addition, due to the extradition law, many major foreign corporations may have gotten warnings from their governments not to extend their business or investment in Hong Kong. 

Even though these businesses did not officially admit it, Beijun feels it is occurring, worsening the problem. The housing market is under pressure.

Sign up to receive our latest news!

By submitting this form, I agree to the terms.