HONG KONG (Reuters) -Home prices in Hong Kong grew 1.3% in September from August, marking the sixth consecutive month of increases, government data showed on Tuesday, supported by improved sentiment.
BY THE NUMBERS
Private home prices gained 1.3% in September from August, following a revised 0.2% rise the previous month, data from the Rating and Valuation Department showed.
September’s growth was the largest since March 2024 and brought prices this year back into positive territory; they have risen 1.1% since December.
WHY IT’S IMPORTANT
Home prices in Hong Kong, one of the world’s least affordable cities, have tumbled nearly 30% from a 2021 peak, hurt by higher mortgage rates, a weak economic outlook and poor demand after many professionals left.
Authorities tried to prop up the sector last year, removing curbs on property purchases and relaxing ratios on down payments, but housing demand has remained soft.
HERE’S SOME CONTEXT
Property developers have been selling new flats at discounted prices to boost sales, suppressing the secondhand market, which is reflected in the official price.
Major Hong Kong banks lowered interest rates in September, following a reduction by the U.S. Federal Reserve.
Hong Kong’s monetary policy moves in lock-step with the U.S. as the city’s currency is pegged to the greenback.
WHAT’S NEXT?
Analysts believe the Hong Kong home market is bottoming out with support from stable buying volume. They said prices next year would depend on the pace of rate cuts and the severity of trade tensions between China and the U.S.
(Reporting by Clare Jim; Editing by Thomas Derpinghaus)
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