HONG KONG, April 27 (Reuters) - Declines in Hong Kong
private home prices slowed in March as a COVID wave in the city
stabilised and the government foreshadowed an easing of social
restrictions, official data showed on Wednesday.
Prices in the world's most unaffordable housing market were
0.7% lower in March than in the previous month, according to the
data. That compared with a revised monthly fall of 2% seen in
Private home prices have fallen 3.2% so far this year to the
lowest level since December 2020, driven down by the economic
effect of some of the world's most stringent social restrictions
for fighting COVID. The government measures have also prompted
real estate agents to lower forecasts for the rest of 2022.
Nonetheless, realtors estimate the housing market has
bottomed, with prices and transaction volumes trending up this
month. Property developers are rushing to launch new sales in
response to the withdrawal of some social restrictions, taking
effect this month.
Presales of Grand Mayfair I, a development in Yuen Long, New
Territories, received 25 times over-subscription for 388 units
on offer, local media reported. Grand Mayfair I is being
developed by Sino Land, K. Wah International Holdings
and China Overseas Land & Investment.
Major developer Sun Hung Kai Properties (SHKP)
said last week it planned to launch new sales in around six
developments this quarter and next.
"The property market will likely ... see a relatively strong
bounce in third and fourth quarter. expect it will post a
5-10% gain for the full year," said SHKP Deputy Managing
Director Victor Lui.
Realtor Hong Kong Property said its survey in mid-April
showed 36.2% of the respondents were optimistic about the
property market in the next 12 months, rising from 28.4% three
months earlier, while those who felt pessimistic dropped to
33.7% from 42.3%.
Shortage of land is the main factor behind Hong Kong's
housing prices, which survey company Demographia ranks as the
An 80-square-metre (860-square-foot) apartment on Hong Kong
island costs around HK$16 million ($2 million), according to the
($1 = 7.8283 Hong Kong dollars)
(Reporting by Clare Jim; Editing by Bradley Perrett)