Prices of Hong Kong properties – residential, retail and office – are expected to fall in , with the city's ongoing anti-government protests, the. Hong Kong's housing market boom is now over, with residential property prices falling by % during the year to Q3 , in stark contrast to. The monthly price decline in one of the world's least affordable property markets was the third in a row, after January's revised per cent drop.
Quarter-on-quarter, residential property prices fell by 5. Surprisingly, smaller-sized properties had the biggest price falls. Prices of apartments smaller than 40 sq. Prices of apartments On the other hand, apartments with sizes bigger than sq. However, the market slowed sharply in the first half of , with house prices rising only by 2.
But the housing market bounced back quickly in the second half of , with prices rising by 8. However, the housing market has slowed sharply in the past several months mainly due to the sharp decline in the flow of money following the intensification of government crackdowns on the wealthy in Mainland China.
Worse, other factors are now aggravating the situation, including the following:. Learn what returns you are likely to earn, and where are the best opportunities. Follow the latest developments in the international property markets through the Global Property Guide newsletter.
Sign Up. Already Subscribed? Manage your subscription. In , while property prices were taking a nosedive across the U. Average home prices were 19 times gross annual median household income in , up from 17 times in and Accordingly, house price increases in Hong Kong are driven more by local and global investment demand, rather than local household earnings.
Housing demand has been propelled by a combination of stringent government regulations on development, low interest rates, and currency stability; while the supply of land, which the government controls, continues to diminish. Despite diving house prices, the government recently indicated that it would keep its rein on the property market so long as uncertainty in the local economy and investment markets remains.
It is too soon to make a decision. Federal Reserve. Despite this, local banks in the country decided to keep their current interest rates. It dropped from 5. In March , the average interest rate on new mortgage loans approved with reference to best lending rate stood at In March , total residential mortgage loans outstanding rose by 6. From about In , the size of the mortgage market is equivalent to In March , new residential mortgage loans approved dropped The mortgage delinquency ratio increased slightly to 0.
The loan-to-value ratio also declined to The extremely low rental yields in Hong Kong can be attributed to the surge in property prices in recent years.
Rents are now falling for all property sizes in Hong Kong, after double-digit annual increases in a year ago. Elsewhere, an office project in Singapore has obtained its temporary occupation permit with 70 percent of its space already leased. Mainland Chinese buyers are shying away from real estate in Hong Kong as the coronavirus pandemic clouds the economic outlook and keeps investors from travelling to the city. Not a single commercial property transaction in the first quarter involved a buyer from mainland China, the first time that has happened since , according to CBRE.
Poly Australia has officially broken ground on its flagship commercial development, the Poly Centre at Circular Quay in Sydney. The delivery of at least 1, homes to buyers will be delayed, while some developers risk losing hundreds of millions of dollars in booking sales, as the pandemic disrupts construction activity in the city due to supply shocks and a slow down in government approvals.
Hong Kong-based Union Medical Healthcare has found a unique way of meeting its rent obligation amid an economy ravaged by the coronavirus pandemic.