HK home market loses nearly HK$480b after curbs scrapped

Hong Kong’s private home market lost nearly HK$480 billion in value since February last year after the additional housing curbs were scrapped, with each homeowner losing an average of HK$470,000, according to Centaline Property Agency. Benefiting from the lifting of cooling measures and the inflow of mainland talent — mainland buyers recorded 11,522 transactions worth HK$128.28 billion over the past year, up 104 percent and 80 percent annually — accounting for 25.2 percent and 30.8 percent of total deals, based on Centaline data.

Centaline said mainland buyers boosted the market briefly, with prices rising 2 percent in two months after the cooling measures were lifted but then falling for five consecutive months.

Nearly a year after the cooling measures were lifted, transaction volumes rose but prices stayed flat, indicating limited impact. The government is set to announce a new budget on Wednesday, likely including economic stimulus measures, Centaline added.

GORDON YANG