Housing market hit with worst declines since 2016

Less than 500 homes were sold for the month as of 25 November.

Bloomberg reported that Hong Kong’s housing market is bearing the brunt of its worst decline since 2016 as new home sales volume fall to less than 500, its lowest point since January or February 2016, data from Midland Realty suggested.

Chart from Bloomberg article

Moreover, the Centa-City Leading Index shows that used-home prices have fallen for eight straight weeks which has been its longest losing streak since 2016. Data further revealed that used-home prices in November saw its largest week-on-week decline of 1.3%.

Chart from Bloomberg article

Meanwhile, secondary home price tags slipped 5% from their August high.

A previous report by JLL said that home prices in the world’s most expensive property market is predicted to slide 15% by 2019, with the rising US-China trade tensions as well as China’s leveraging efforts negatively affecting business confidence in the private sector as evidenced when the benchmark Hang Seng Index plunged by over 20% since January.

The past two months have already heated up the housing market as prices dipped 1.4% after 28 consecutive months of hike.