Hong Kong's Secondary Home Prices Hit 6.5-Year Low Amid Market Downturn

Hong Kong's secondary private home prices have reached their lowest point in over six years following a continuous three-week decline, as reported by the Centaline Property's Centa-City Leading Index. The index, a benchmark for the city's second-hand property prices, fell another 0.23 percent this week to 150.71, marking a total drop of 2.1 percent over the recent three weeks.

The downward trend was noted across various home sizes, with prices for small to medium-sized flats decreasing by roughly 0.2 percent, and nearly 0.3 percent for larger flats.

While the Island District experienced a minor price increase of about 1 percent, other districts faced reductions between 0.2 percent and 1 percent.

Amidst a lackluster secondary market sentiment and competition from new developments, the CCL Index has declined by 3.87 percent this year. Analysts anticipate home prices might see an overall decline of approximately 5 percent by year's end.

In a notable transaction, a three-bedroom unit in Taikoo Shing, Quarry Bay, sold for HK$ 7.9 million, or HK$11,466 per square foot, following a substantial price cut by the seller amounting to HK$2.6 million. This sale resulted in a modest profit of HK$1.65 million for the homeowner.

On the hospitality front, Regal Hotels International (0078) reports strong booking numbers for the Christmas holiday season, with vice chairwoman Lo Po-man expressing optimism for the upcoming New Year's period. As tourism rebounds, some Regal hotels in Hong Kong are witnessing room rates and occupancy surpassing 2019 figures, though two airport-proximate hotels have yet to reach pre-pandemic performance levels.

With business travel on the rise and Hong Kong resuming large-scale events, Lo is confident that hotel business linked to the airport and exhibition sectors will see considerable growth. 

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