Property market weakens further
Hong Kong’s appetite for pricey property is abating as government taxes bite hard.
Total home mortgages fell 16% to HK$8.9 billion in December compared to November, said the Hong Kong Monetary Authority. It is the lowest level since February 2009 when mortgages dropped to HK$7.1 billion.
Approved mortgages were also down: to HK$10.4 billion in December, lower by 13%.The number of new mortgage applications dropped 15% to 6,039.
Analysts attributed the slowdown to government property restrictions that put off buyers in the world’s most expensive place to buy homes.
Home prices jumped 70% between 2009 and their 14-year-high in June 2011, but have since fallen as increased borrowing costs and taxes discouraged buyers.
Prices are, however, predicted to drop by 25% in 2013, according to Barclays Capital Research.
The Monetary Authority also reported that the estimated number of residential mortgage loans in negative equity (or those “underwater”) decreased from 1,653 cases in September 2011(valued at HK $4.1 billion) to 1,465 in December (valued at HK $3.6 billion) .
Read more here.
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Tags: Hong Kong home mortgages, Hong Kong Monetary Authority
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