Posted on 27 November, 2020 | By Property852
Hong Kong apartment prices are expected to be reduced even further due to the forthcoming fourth wave of Covid-19. This is on top of a 0.6% fall in October. On Thursday the government’s Rating and valuation Department announced that last month saw the secondary market home price index drop to 380.9 points.
Hong Kong is in the midst of its worst ever recession and high unemployment rates are still rattling the market. Covid-19 cases decreased in October and as a result the new home market once more became fairly active. As a result Hong Kong apartment owners became less willing to haggle with home seekers.
However it seems that most of last month’s sales involved sellers who dropped their price due to the uncertainty of the economy. Property prices are down 4% from their highest point of 396.9 points, which occurred in May 2020.
The index is expected to drop again next month though it is estimated that the decline of the price index will lessen to 0.3%.
However the impending fourth wave of Covid-19, coupled with the recent mass Cathay Pacific redundancies could be an even greater concern for the Hong Kong property market in December. These factors could cause the property price index to drop to 1% of more.
The economic situation could further worsen if other companies follow Cathay’s lead and lay off their employees.
There have been calls upon the Hong Kong Government to relax special stamp duty in order to help increase activity in the second hand property market.
Meanwhile the recent sale of the new Pavilia Farm apartments from New World Development has been much better than expected, which goes to show that the Hong Kong property market is currently a very mixed arena.