Posted on 09 February, 2021 | By Property852
Hong Kong apartment prices fell to their lowest in eight months due to the pandemic. A statement from the Rating and Valuation Department indicated that the private domestic price index dropped 0.39% to month-on-month to 379.3. This is the third month in a row that it has declined and the lowest point of the last eight months.
The decline in December was also much worse than in November, however prices still rose 0.03% from the same time the year before.
The good news is that prices are expected to be more stable this year. Experts say that last year’s market was tough even taking the pandemic into account. The cost of small and medium sized units dropped across the industry.
Hong Kong apartments such as class B units, which are sized 432 to 752 square foot dropped most substantially, with a month on month drop of around 0.71% . Likewise slass A and C units experienced drops of 0.14% and 0.3%. Class D units, which are sized 1,076 to 1,721 square feet, remained the same. The selling price index increased to 319.9 points, which represents a rise of 2.83%. Luxury properties with a floor area of greater than 1,722 square feet, the sale price index is recently reported to be 316 – a jump of about 3.13%.
The price index for selected popular developments fell to 321.4 - a drop of about 0.37%.
This index reflects the sale of over one hundred Hong Kong property estates.
Similarly the urban area index, which represents Hong Kong locations has a new monthly score of 324.7 points, a fall of about 0.12 percent. Meanwhile, the New Territories index reported a new score of 310.8 points, a drop of around 0.51%.
Donald Choi Wun-hing the CEO of Chinachem Group says that he optimistic about the Hong Kong property market outlook despite the third straight month’s drop in Hong Kong apartment prices. He expressed the view that there was still a minor rise recorded in an economy that was undergoing a lot of pressure, proving that there is still a big demand in the property market. Donald believes that this, and the fact that interest rates remain low, hopefully means that Hong Kong property prices will grow steadily throughout the year.
The sales and marketing director at Minmetals Land - Allen Fong, said that even though unemployment figures continued to rise, the sales of newly released Hong Kong apartments have not been affected. Many high profile property projects that have sold out lately prove the resilience of the market and the buying power of Hong Kongers despite the lack of Mainland buyers.