Home Prices see a slight rise after stamp duty cut

It rose 0.62% week-on-week from 11 March to 17 March.

Home prices in Hong Kong grew marginally a week after the government ditched all extra stamp duties.

Citing the Centa City Leading Index (CCLI), Nomura said home prices in the city rose 0.62% week-on-week (WoW) between 11 March and 17 March.

Nomura said the 0.62% WoW sequential increase was "very marginal" because the CCLI dropped for three consecutive weeks before the scrapping of all the extra stamp duties on 28 February.

"Following the latest marginal recovery, the CCLI is still down by 2.2% year-to-date," Nomura reported.

Nomura believes the scrapping of extra stamp duties "would not be sufficient to boost home prices this year, except for a short-term rebound in prices and a temporary uptick in home transaction volumes."

"We continue to expect home prices to decline by a total of 7% in 2024," it added.