The trade spat and China's economic slowdown hit demand.
The number of sale and purchase agreements in 2018 dropped 5.5% YoY to 79,193 deals for all building units in another sign of Hong Kong’s property market decline, according to a government statement. The total consideration for these agreements inched up 2.1% to $741.38b.
Also read: Property sales crash 28% in September
The number of assignments of building units also hit 105,293 for a total consideration of $824.22b.
The dismal sales figure reflects Hong Kong’s weakening residential market as the protracted trade dispute and China’s economic slowdown weighed heavily on buying sentiment given the heavy reliance of the local property market on Mainland capital.
Home prices are expected to fall 15% in 2019 to cap nearly ten years of bull-run in the housing market, real estate consultant JLL said. Indeed, after 28 months of heated uptrend, residential property prices inched down 0.1% in August 2018.
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