Home prices fall to eight-year lows - RTHK
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Home prices fall to eight-year lows

2024-10-29 HKT 12:25
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  • Home prices fell to an eight-year-low, but rents rose to a five-year high. Photo: RTHK
    Home prices fell to an eight-year-low, but rents rose to a five-year high. Photo: RTHK
Government data on Tuesday showed that home prices dropped last month to their lowest level since August 2016.

Private residential prices in September were down 1.67 percent month-on-month and 12.5 percent year-on-year, according to the Rating and Valuation Department.

Rents, meanwhile, rose for the seventh consecutive month to reach a five-year high.

Eddie Kwok from CBRE Hong Kong said measures announced in the recent Policy Address, such as an adjustment to the maximum loan-to-value ratio for mortgages, helped stabilise prices in the past two weeks.

Kwok said prices are likely to bottom out soon.

"Yield-seeking investors may be a demand driver entering the residential market as residential prices reached a relatively low level, coupled with expected lower financing costs going forward," he said in a statement.

Kwok said that rents, which were 5.8 percent higher in September year-on-year, are likely to continue to rise, but should moderate in the short term now that students from overseas have already moved into their new homes for the academic year.

Home prices fall to eight-year lows