Hong Kong home prices hit half-year low

Business | Kevin Xu 27 Nov 2020

Hong Kong's home prices fell to a half-year low in October, data from the Rating and Valuation Department showed.

The home price index for lived-in homes dropped 0.6 percent to 380.9 last month, down from 383.1 in September. But that was still 0.44 percent higher than 379.2 in December last year.

The property price index weakened unexpectedly last month as the local economy was not in a good position, even though the epidemic was relatively under control, said Derek Chan, head of research at Ricacorp Properties.

Chan believes most transactions last month involved vendors who were willing to cut asking prices over concerns about the economic outlook and unemployment rate.

He expects the November index will fall by 0.3 percent.

Chan revised the estimate of home price growth in the fourth quarter to negative 1.5 percent from 3 percent previously, amid a sudden resurgence of Covid-19 infections.

Meanwhile, the rental index slid to 179.3 in October from 179.4 in September, according to the Rating and Valuation Department.

Separately, Swire Pacific (0019, 0087) expects to raise US$160 million (HK$1.25 billion) through the proposed listing of its Danish offshore wind installation and transport business on the Oslo Stock Exchange in Norway. A total of 57.99 million shares are to be made available in the IPO at a price of NOK23.5 (HK$20.5) per share.

In the primary market, New World Development (0017) has collected HK$3.28 billion after selling about 90 percent of the 315 units on offer at The Pavilia Farm phase two atop Tai Wai Station on Thursday.

NWD has now collected about HK$23 billion after selling around 2,100 units in the first two phases of the project.

The developer previously released 315 flats in the fourth price list of The Pavilia Farm phase two at an average HK$22,037 per sq ft after discounts, about 16 percent higher than the first price list.

The cheapest flat, measuring 264 sq ft, is offered at HK$7.19 million, or HK$27,258 per sq ft after discounts.

In the commercial property market, Bridgeway Prime Shop Fund Management purchased a 200-sq-ft shop premise at Yu Chau Street in Prince Edward for HK$9.88 million, after HK$6.92 million was slashed from the original asking price.

The double stamp duty on commercial property transactions has been abolished as the market reels from the pandemic and Sino-US tensions.



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