Negative equity heads for record as prices fall

UBS said the number of negative equity cases in Hong Kong may surge toward record highs as the SAR's home prices are expected to decline by 10 percent in 2024 due to an oversupply of homes and the persistence of a high-interest rate environment.

Managing director, and head of China and Hong Kong property research John Lam, describes the local property market as having a "bitter before sweet" outlook for the coming year.

Given the interest rate hikes, developers with higher debt ratios may need to offer discounts to stimulate sales and expedite fund inflow. It is predicted that property prices may further decline by 10 percent next year.

Meanwhile, in the primary market, The Paddington, a recent residential undertaking of Henderson Land (0012) in Sham Shui Po, is set to release its initial offering of 68 flats next Monday, featuring prices starting from HK$3.92 million after discounts. The available units have areas ranging from 237 to 499 square feet, and a discounted average price per sq ft of HK$17,521.

In the secondary market, social media influencer Joseph Lam-chok, who's been linked to the unlicensed JPEX virtual asset trading platform scandal, recently initiated the sale of two flats in Hung Hom and Diamond Hill, with the Hung Hom flat selling for HK$7.5 million after a HK$2.5 million price cut.

Staff reporter