Categorized | International

Housing Prices in Hong Kong Decline

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Residential real estate prices in Hong Kong fell in October to their lowest point since 2009. While Hong Kong’s current economic situation is relatively strong, global economic fears had a significant impact on the sale of residential housing units in the nation.

The impact of the European debt crisis is starting to extend throughout the world, as residential real estate markets throughout the world are beginning to suffer declines due to worries over the possibility of another global recession.

While residential property prices decreased across the board, average flats and homes fell further than luxury homes, as most luxury owners did not opt to sell during the down period. In fact, only those in desperate need to sell were willing to take a loss, driving down their respective market.

The residential real estate market was not the only sector to experience declines in pricing. Rent prices across the board fell during October, as a majority of landlords were more willing to renegotiate the amount that they charge to secure tenants. Luxury rental units saw the biggest decline in the last month, dropping nearly two percent. Other sectors saw rents drop by as much as one and a half percent.

The global economy is expected to continue to impact Hong Kong’s housing market going forward. Depending on the state of the European debt crisis, the housing market continue remain relatively level, or it could experience even further declines. If the outlook is more severe than expected, many analysts believe that both housing prices, and also rent prices could experience strong declines in the coming months.

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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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