HONG KONG, Aug 29 (Reuters) – Hong Kong home prices fell 1.12% in July from June, the third straight monthly decline, official data showed on Tuesday, as rising interest rates and rising interest rates weighed on homebuyer sentiment was affected by a weak economic outlook .
Last month’s decline in house prices in the financial hub, one of the world’s most expensive markets, followed a revised 1.05% decline in June, according to published data.
House prices have been falling again since May, after enjoying a short-lived rebound earlier this year after falling 15% in 2022.
Major developer Henderson Land (0012.HK) said in its earnings release last week that the property market would be “quite depressed” in the second half of the year unless the government proposes new measures due to the downward trend in property prices in the secondary market “become apparent”. .
The industry has pushed the government to ease further restrictions on the property market to boost transactions. However, the government has repeatedly stated that this is not the right time for further adjustments as property prices are still relatively high amid housing shortages.
The opening of a new home this month by another major developer, CK Asset (1113.HK), owned by tycoon Li Ka-shing, at its lowest prices in seven years shocked the market and could intensify a price war in the financial hub, said realtors.
According to real estate agent Centaline, transaction volume in August should fall to an eight-month low for the fifth month.
Reporting by Clare Jim; Edited by Michael Perry
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