Home Prices Lowest Since March 2021

Private home prices have fallen for the fourth month in a row to their lowest level since March last year.

New government indices show that private flat prices in January fell 1.1 percent month-on-month. But on year, prices were still 1.8 percent higher.

Large homes of more than 1,076 square feet slipped almost 2 percent month-on-month, while prices of smaller flats were down 1.1 percent.

Hannah Jeong, the head of valuation at Colliers Hong Kong, said flat prices may go down further if the pandemic doesn’t come under control.

“Given the current situation of a slowed-down economy as well as the Omicron situation, if this was prolonged to the middle of this year, the price will continue to fall," she told RTHK.

"But at this moment, hopefully, if the coronavirus situation gets under control by middle of the year, then we will expect some positive movement by second half, ending up possibly [with] a slight price increment by the end of year, possibly two to three percent.”

Jeong said measures announced in the Budget, including making it easier for homebuyers to take out loans for pricier flats, will encourage transactions.

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