Home prices expected to decline in 2024: report

The city's property sector is also expected to face a gradual tightening of funding until prices stabilize in 2025.

Home prices are predicted to decline throughout 2024, posing ongoing challenges for Hong Kong property developers, according to a recent S&P Global Ratings report. 

The report, titled "Hong Kong's Easing Property Policy Isn't A Quick Fix For Developers," predicted a further decline in home prices in 2024, with stabilization expected only by 2025.

The persisting oversupply in the market is also expected to extend for one to two more years. Developers, particularly those with tight liquidity, may also face challenges in cash flows due to aggressive price cuts. 

S&P Global Ratings Credit Analyst Edward Chan said that despite the downturn, rated developers with robust liquidity may find support from banks focusing on top-quality borrowers.

"This is also likely to shield them from the liquidity stress of a nonrated developer," he said.

The report, however, also noted a potential risk for developers lacking sufficient liquidity or alternative means to counter the impact of falling property prices in Hong Kong. 

The city's property sector is also expected to face a gradual tightening of funding until prices stabilise in 2025.