The lowest monthly level in 25 years.
Land Registry records show only 2,045 residential sales transactions were recorded in the first month of 2016, following the US interest-rate rise in December 2015.
According to a research note from Knight Frank, volume plunged 68.1% year on year, hitting the lowest monthly level in 25 years.
Residential sales value in January slumped to HK$15.8 billion, a 63.4% decline from January 2015. Buyers took a wait-and-see attitude amid various uncertainties in both local and external markets.
Here’s more from Knight Frank:
After the US interest-rate hike in December, mortgage rates in Hong Kong are expected to rise in the next few months. Developers may have to offer more attractive prices and incentives, especially in the New Territories, where supply will be abundant.
In December 2015, mass residential prices still increased 2.7% from December 2014, while luxury residential prices dropped only around 1%, compared with the 13.8% and 6.4% growth in 2014 for mass and luxury prices respectively, according to the Rating and Valuation Department.
Home prices are expected to decrease further this year, with mass residential prices dropping 5-10% and luxury home prices falling up to 5%, amid the US interest-rate hike and the projected increase in residential supply.
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