Hong Kong's property market shows signs of decline. That's according to government data and Centaline Property Index, the city's widely used residential property index. Analysts expect an additional decline this year.
Hong Kong's home prices are among the highest in the world, but it's seen a decline in recent months. These secondary property units were placed in the market over a week, the sales volume is okay, but not as good as last year, says Raymond Li, who works for the city's leading property agency.
Li said new home sales in the city are also feeling the crunch. This month, new home transactions only averaged 73 sales but the highest monthly average is usually more than 500, with the lowest near 300.
Actually, the property transactions fell 12 percent in 2015, according to the government data showed earlier this month.
Due to the property market decline, many buyers are waiting to purchase a home, leaving smaller property agencies to close their doors because of weak sales.”
This year, Sai Hung Kai Properties placed new units on the market, which is 15 percent lower than the units launched in the same district last year. And Hang Lung Properties Ltd, which reported full-year 2015 earnings last month, said it had sold just 63 apartments and some car parking spaces. Company profit plunged 57 percent.
Adding to the bleak forecast, Raymond Li, expects a 10-15 percent decline this year as well.
