Home price index slips by over 2% in December 2022

Price index stood at 332.5, the Rating and Valuation Department reported.

Home price index declined by 2.03% to 332.5 in December 2022, the Rating and Valuation Department reported. 

CBRE noted this is milder compared to the 3.25% drop seen in November. The December price index also marked the seventh consecutive month of decline. 

“In December, the market sentiment was weak due to the surge in COVID cases, bearish stock market, and HIBOR standing high at 5%,” Eddie Kwok, Senior Director, Valuation & Advisory Services, CBRE Hong Kong, said.

“The news about the border reopening between China and Hong Kong SAR was only announced in late December. Overall speaking, the December market was sluggish.”

Read more: ‘Subdued’ market sentiment speeds up home prices decline: report

Moreover, CBRE projected the residential market will likely see a turning point in 2023 as it expects a positive market sentiment and an improvement in buyers’ confidence.

“Nevertheless, a plenty supply of close to 30,000 private housing units together with the unsold units of about 16,000 will come into the market. It is thus expected that there will only be a stable market in 2023,” Kwok said.