Home prices tipped to fall 10pc amid uncertainties

Business | Kevin Xu 28 Aug 2019

Home prices in Hong Kong will fall up to 10 percent in the second half if political uncertainties continue, said Thomas Lam, Knight Frank executive director and head of valuation and advisory.

The property consultancy also said in a report that weakening confidence in the market has led to property owners' slashing prices, particularly for secondary homes, despite the US interest rate cut.

Overall residential prices dropped in June for the first time this year - down 0.8 percent month-on-month, data from the Rating and Valuation Department showed.

In the retail market, deteriorating business prospects have driven retailers to negotiate rental reductions with landlords.

A shopping mall offered a one-off rental subsidy equivalent to 20 percent of one month's rent to support existing tenants, Knight Frank said.

In the secondary market, a 399-square-foot flat at Yoho Midtown in Yuen Long sold for HK$6.5 million, or HK$16,291 per sq ft, 4 percent lower than the original asking price, according to Centaline.

Secondary transactions in Tung Chung totaled 21 as of yesterday, down from 33 in July, Centaline added.

Meanwhile, Midland IC&I (0459) said net profit for the six months ended June 30 slumped 58 percent year-on-year to HK$20.97 million, or 1.16 HK cents per share.

No interim dividend was declared.

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