HONG KONG, Dec 27 (Reuters) – Hong Kong’s dwelling costs had been largely flat in November, in an early signal that the struggling property market may backside out after rate of interest cuts and different supportive measures.
House costs in Hong Kong, one of many world’s most unaffordable cities, have tumbled almost 30% from their 2021 peak, damage by greater mortgage charges, an outflow of execs and a weak market outlook.
Authorities have tried to prop up the ailing sector this 12 months with a couple of rounds of supportive measures resembling lifting all property buy curbs and enjoyable down fee ratios, however housing demand remained gentle, particularly within the secondary market.
Non-public dwelling costs edged up 0.07% in November from the month earlier than. This adopted a revised 0.9% climb in October, which was the primary rise in 5 months.
Costs have dropped 6.6% to date this 12 months.
The forecasts by realtors for dwelling costs in 2025 vary from a 5% drop to a 5% rise, relying on elements such because the tempo of extra charge cuts and the state of commerce tensions between China and the U.S.
Hong Kong’s main banks, together with HSBC and Financial institution of China (Hong Kong), lowered their finest lending charge within the metropolis this month by 25 foundation factors for the third time this 12 months, following the U.S. Federal Reserve’s transfer.
The territory’s foreign money is pegged to the U.S. greenback, however native banks make their very own charge choices relying on their funding prices. (Reporting by Clare Jim; Enhancing by Nicholas Yong)
