Home prices fall 0.2% w/w

HK is the only region that posted a loss.

According to Barclays, after rising 0.1% w/w in the previous week, the Centa-City Leading Index of Hong Kong home prices fell 0.2% w/w to 118.12, and expanded the year-to-date loss to 0.8%.

Compared with the peak reading of 123.66 recorded in March 2013, the CCL Index is 4.5% lower.

Here’s more from Barclays:

Looking across the regions, only Hong Kong Island registered a home price loss of 2.4% w/w, while all the other regions recorded higher home prices.

New Territories West rose 1.6% w/w, followed by Kowloon (+0.3% w/w) and New Territories East (+0.1% w/w).

Of interest is a report in the Hong Kong Economic Times in which an unnamed government official was quoted as saying that secondary home prices would start to feel the pressure if primary transaction prices continue to be revised down.

Currently, secondary market prices are holding stable as the available flats offered for sale in the secondary market are limited.

If developers continue to adjust down selling prices and offer discounts, the secondary price is expected to follow the downtrend.