Hong Kong secondary home prices drop 0.71% week on week to two-month low
Hong Kong's secondary home prices fell 0.71 per cent week on week, hitting a more than two-month low, according to the Centa-City Leading Index. The decline was led by major estates, with prices in Kowloon and Hong Kong Island falling sharply.
Hong Kong's secondary home prices fell 0.71 per cent week on week to 160.05, hitting a more than two-month low, according to the Centa-City Leading Index (CCL) released on Friday. The index has still accumulated a gain of 11.06 per cent so far this year.
The leading index for large estates dropped 0.88 per cent week on week, while small and medium-sized units fell 0.74 per cent and large units declined 0.58 per cent.
Prices softened across most districts. Hong Kong Island and Kowloon fell nearly 1 per cent and almost 2 per cent respectively, the New Territories West saw a slight decline, and the New Territories East was flat.
Centaline Property said several developers have launched new projects at low prices to attract buyers, thinning demand for secondary homes. Expectations that the US Federal Reserve will raise interest rates again this year have also put upward pressure on local borrowing costs, making secondary buyers cautious.
However, the agency noted that primary market sales have been strong, and banks have been offering mortgage discounts and raising cash rebates, providing some support to the property market.