HONG KONG : Hong Kong’s private home prices reversed a 10-month falling streak in March, climbing 1.1 per cent from February, after the financial city lifted curbs to boost the ailing property market.
The increase in home prices in one of the world’s most expensive property markets followed a revised 1.7 per cent fall in February, official data showed on Friday.
For the first quarter, prices dropped 1.8 per cent, after plunging 20 per cent from their 2021 peak due to higher mortgage rates, an outflow of talent and a weak market outlook.
In late February, Hong Kong removed all additional stamp duties for foreign and second home buyers, as well as on those selling flats within two years of buying them, and the property market immediately celebrated with a jump in transactions.
However, prices are expected to remain suppressed as property developers rushed to launch new sales at steep discounts of up to 30 per cent, and that drew much of the buying interest from the secondary home market.
Realtor Cushman & Wakefield said housing prices have bottomed, but a significant rebound is unlikely due to economic uncertainties amid a high interest rate environment.
It forecast a rebound of 5-7 per cent in prices if the U.S. Federal Reserve cuts interest rates in the second half, which Hong Kong banks could track as the currency is pegged to the dollar, and up to a 40 per cent rebound in transactions for the full year.
A report by realtor Ricacorp this week showed 30 per cent of transactions of second-hand homes were sold at a loss in the first quarter and it expected the trend to continue in the second quarter.
