Home prices in Hong Kong in November fall for month 2, backing up from peak

HONG KONG, Dec.29 (Reuters) – Prices for private housing in Hong Kong, among the most expensive in the world, fell from a record high for the second month of November, official data showed on Wednesday, but agents real estate companies expect the real estate market to gain up to 10% in 2022.

Prices fell 1.2% last month, the data showed, from a revised 0.5% drop in October. Prices hit a record high in September according to revised figures and rose 3.1% in the first 11 months. Read more

Estate agents said buyers became more cautious after prices hit a new high as policy measures could be introduced to cool the market. The fact that none of these measures have been introduced is one of the reasons analysts cite expected market gains next year.

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The official price index is one to two months behind the market, they added.

For the full year 2021, real estate consultancy Cushman & Wakefield expects house prices to rise by around 6.5% and the number of transactions to reach their highest level since 2012 , to 74,600 units.

He predicts that house prices will rise another 5-10% in 2022 as the economic environment improves.

JLL, another consulting firm, expects prices to climb up to 5% next year due to strong demand and low mortgage rates.

“The supply of new private housing will remain weak over the medium term… this will support mass residential capital values ​​to remain firm,” said Joseph Tsang, president of JLL in Hong Kong.

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Reporting by Clare Jim; Editing by Stephen Coates

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Carol N. Valencia