Hong Kong home prices to extend decline after October’s 0.6 per cent surprise drop as Covid-19’s fourth wave dents confidence



a man standing in front of a large city: It is likely most of October’s transactions involved owners who were still willing to reduce their asking prices because of concerns about the economic outlook, said Derek Chan of Ricacorp. Photo: Winson Wong


© SCMP
It is likely most of October’s transactions involved owners who were still willing to reduce their asking prices because of concerns about the economic outlook, said Derek Chan of Ricacorp. Photo: Winson Wong

The fourth wave of coronavirus infections is expected to drag Hong Kong’s home prices down further after they “unexpectedly” fell 0.6 per cent in October.

In an earlier-than-expected release, the government’s Rating and Valuation Department on Thursday revealed that the secondary market home price index dropped to 380.9 last month.

“Even though the epidemic was relatively stable, the property price index last month unexpectedly softened,” said Derek Chan, head of research at Ricacorp Properties.

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He believed this was because the economic situation – Hong Kong is mired in its worst ever recession – and high unemployment are

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Surprise drop in September home sales as buyers get priced out

A Sale Pending sign is seen in front of a home in Miami, Florida.

Joe Raedle | Getty Images

Potential homebuyers may be hitting the limit of what they can afford. Pending home sales, a measure of signed contracts on existing homes, fell 2.2% in September compared with August, according to the National Association of Realtors.

It was the first monthly decline in 4 months. Analysts had expected a small monthly gain. Pending sales were 20.5% higher annually.

The Northeast, which is seeing distinct urban flight from New York City amid the coronavirus pandemic, was the only region to post a gain. Sales were up 2% for the month and 27.7% annually.

In the Midwest, pending sales fell 3.2% monthly but were up 18.5% from September 2019.

Pending home sales in the South decreased 3% monthly and increased 19.6% annually. In the West sales fell 2.6% monthly and were up

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