HONG KONG (Reuters) – Hong Kong private home prices fell 2.256% from the previous month in August to the lowest level since February 2019, official data on Wednesday showed market sentiment was hit by rising interest rates.
Home prices in one of the world’s most unaffordable housing markets fell last month by a revised 1 .44 July %.
House prices in the financial centre fell by 6.5% in the first eight months of the year. The real estate price index in August was 398.2, lower than the historical high of 398.1 in September last year.
Rising mortgage costs and a bleak economic outlook have deepened landlord pessimism, while house prices are expected to fall by 75 % over the year since 2008 fell for the first time since.
Hong Kong banks raise their prime lending rate by 256 .5 basis points, the first rate hike in four years, following the third consecutive rate hike by the Federal Reserve basis points.
Cusson Leung, head of Asia real estate research at JPMorgan, said the lower-than-expected rate hike is positive, but the housing market may continue to soften in 2023 due to the global economy Weak.
However, he expects the decline to be modest.
“For market sentiment to improve, we need to contribute to a better economy and a better stock market,” Liang said, adding that reopening the border with mainland China will also stimulate demand .
Hong Kong chief financial officer Paul Chan said last week that he did not see a huge risk to the Hong Kong real estate market and that there was no need to adjust real estate control measures.
Hong Kong’s de facto central bank last week eased mortgage stress test requirements. Prime lending rates hiked to help homebuyers borrow from banks.