Categorized | International

Housing Prices Decline in Hong Kong in December

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Both residential real estate prices and sales in Hong Kong fell in December of 2011 as a result of what analysts believe to be a reaction to the overall global economic uncertainty.

Home sales fell more than ten percent on average during the month. Some sectors, such as the ultra-luxury properties, fell as much as thirty percent in terms of the number of sales. The decline experienced in December was consistent with the yearly performance of Hong Kong’s residential real estate market. Residential properties experience a forty percent decrease in the number of sales over the past year.

Rents also experienced a slight decline in Hong Kong, as landlords actively sought to reduce the number of vacancies in their rental properties. The average rent fell two and a half percent. Analysts believe that the rent price figures will rise again shortly due to increased demand.

While the residential real estate market in Hong Kong suffered, the commercial real estate market in non-prime areas showed signs of growth. The number of leases signed during the month of December increased from the previous month in this particular sector. The commercial real estate market in Hong Kong’s prime district, however, did not perform as well.

The prime sector of the commercial real estate market experienced an increase in the total number of vacancies, as many businesses opted to move to non-prime areas in an effort to cut back costs. Those actions taken by businesses may be an indication that Hong Kong has been more directly affected by the global economy than otherwise indicated.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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