Hong Kong home prices fall for first time in 29 months
October 05, 2018 - Hong Kong
Hong Kong private home prices fell for the first time in 29 months in August and are expected to soften further as interest rates rise and the Sino-U.S. trade war clouds the outlook for the city’s economy.
Prices eased 0.076% last month from July, government data showed. While slight, it marked first decline since March 2016, a cooling sign for one of the world’s more expensive property markets.
Still, prices have surged 11.7% so far this year, and rocketed 16% year-on-year, according to Reuters’ calculations based on an index compiled by Hong Kong’s Rating and Valuation Department.
Ultra low interest rates, limited housing supply and large flows of capital from mainland Chinese buyers helped push housing prices up 165% over a decade, prompting repeated warnings from authorities about the risks of an asset bubble.
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