,Hong Kong

Housing correction of 15% possible in 2019

The world’s most expensive property market is finally slowing down.

Bloomberg reports that housing correction of as much as 15% in the world’s most expensive property market may take place in the first half of 2019 as monetary policy tightens and Chinese liquidity into Hong Kong recedes, according to Kenneth Gaw, president of Gaw Capital partners. 

“The Hong Kong market has been going up for the last 10, 15 years,” Gaw told Bloomberg. “With interest rates going up, less money coming in from China, I think, very possible, there is a correction.”

Gaw adds to the growing chorus of market analysts that have flagged concerns related to the sharp slowdown in the residential market as Nomura International expects home prices to fall 13% in 2019 and wipe out property gains which have surged 14% so far this year.

Also read: Developers sweeten property packages in bid to dispose stock

Hong Kong’s heated property market appears to be showing signs of slowing down as home price growth has moderated slightly from peak levels in 2017 on the back of the government efforts to cool the market including taxing vacant properties. In fact, the growth of residential property prices have tapered off from 21.6% in June 2017 to 14.7% in May, according to BMI Research.

The number of home sales also fell 9% MoM to 6,093 sold units in July, according to real estate consultant Knight Frank, as buyers held back purchases to understand the full impact of the cooling measures.

“In light of the government intervention and external uncertainties, we expect home prices to grow at a slower rate in the second half of the year. Over the whole year though, residential prices are expected to increase between 10-13%,” added Knight Frank.

Here's more from Bloomberg

Join Hong Kong Business community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

These five countries have Omricon cases.
The initiatives include accelerating net-zero electricity generation.
InnoClub will provide solutions in three focus areas.
The airline’s cargo yield is also expected to be 2% higher h-o-h in 2H21.
The country received a 9.23 score out of 10.
HK costs are the 9th most expensive in the Asia Pacific.
Employees with digital transformation-related jobs are most likely to benefit.
A government spokesman attributed the increase to entrenched economic recovery.
Carousell said 85% of its HK users have made secondhand purchases in the past.
Expansion plans were greatly expressed by companies from the industrial goods sector.
Winners were recognised via digital presentations held on the 24ᵗʰ and 25ᵗʰ of November.
The Gaw Capital Partners-led consortium will use the loan for the acquisition of office buildings.
The report said about 10.4% of locals are planning to own NFTs in the future.