HONG KONG, Dec 27 (Reuters) – Hong Kong’s home prices were largely flat in November, in an early sign that the struggling property market could bottom out after interest rate cuts and other supportive measures.
Home prices in Hong Kong, one of the world’s most unaffordable cities, have tumbled nearly 30% from their 2021 peak, hurt by higher mortgage rates, an outflow of professionals and a weak market outlook.
Authorities have tried to prop up the ailing sector this year with a few rounds of supportive measures such as lifting all property purchase curbs and relaxing down payment ratios, but housing demand remained soft, especially in the secondary market.
Private home prices edged up 0.07% in November from the month before. This followed a revised 0.9% climb in October, which was the first rise in five months.
Prices have dropped 6.6% so far this year.
The forecasts by realtors for home prices in 2025 range from a 5% drop to a 5% rise, depending on factors such as the pace of more rate cuts and the state of trade tensions between China and the U.S.
Hong Kong’s major banks, including HSBC and Bank of China (Hong Kong), lowered their best lending rate in the city this month by 25 basis points for the third time this year, following the U.S. Federal Reserve’s move.
The territory’s currency is pegged to the U.S. dollar, but local banks make their own rate decisions depending on their funding costs. (Reporting by Clare Jim; Editing by Nicholas Yong)
