Hong Kong Oct home prices drop 2.4%, biggest fall in 4 years

HONG KONG  – Hong Kong private home prices fell 2.4 percent in October, the biggest drop since November 2018, official data showed on Monday, dragged down by worsening market sentiment amid a pessimistic economic outlook.

The drop in home prices last month in one of the world’s most unaffordable housing markets followed a revised 2.1 percent fall in September. Home prices in the financial hub have fallen 10.5 percent in the first ten months of this year.

The property price index was at 352.4 in October, the lowest level since December 2017.

Rising mortgage costs and a bleak economic outlook have deepened pessimism among homeowners, while home prices for the full-year are expected to drop around 10 percent, the first fall since 2008.

Martin Wong, real estate consultancy Knight Frank Greater China head of research and consultancy, said he expects prices to fall 15 percent for the full year, and transaction volumes to slip 40 percent from last year to the lowest since 1997.