Home prices to bottom out in September or October: C&W
In the first seven months of 2022, prices fell 4.5% YoY.
Despite an expected peak of cases in September, Cushman & Wakefield said home prices could potentially bottom out in the same month, or in October.
This is because there have been price corrections across multiple market segments in the first seven months of the year, said C&W Hong Kong’s Senior Director for Valuation and Advisory, Edgar Lai.
“The latest government figures indicate that overall residential prices have recorded a decline for the year-to-date, falling 4.5% in the first seven months. At City One Shatin, a proxy for smaller lump sum units, prices experienced a notable drop of 7.1% QoQ, while Taikoo Shing, representing the mid-price market, fell by 4.1% QoQ,” Lai said.
“Prices in the luxury segment, such as Residence Bel-Air, held up relatively well with a more modest 2.1% decline QoQ, as luxury property owners have stronger holding power and are less impacted by the external market,” he added.
For the full year, C&W expects residential prices to drop by around 5% YoY to 8% YoY.