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Hong Kong’s July used-home price index drops to an 8-year low amid tepid property market
The prices of lived-in homes fell 1.9 per cent in July from the previous month, dragging the official benchmark to its lowest level in nearly eight years, according to data provided by Hong Kong’s Rating and Valuation Department.
The index of second-hand homes fell to 296.8 in July, the lowest level since the September 2016 reading of 296.2, according to the data. It was the third consecutive month of decline, the data showed.
Hong Kong’s housing market is mired in a slump, as a huge pipeline of upcoming and unsold homes combined with the highest borrowing costs in more than two decades to sap purchasing demand. The slump has extended into the secondary market, where the prices of lived-in residential property has already retreated by 4.7 per cent so far this year, erasing the brief spurts of euphoria in March and April after the government removed some purchase stamp duties.
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