Hong Kong's secondary home prices fall by the most in 14 months in October as banks turn cautious on valuations

Asia's Tech News Daily

Hong Kong’s secondary home prices fall by the most in 14 months in October as banks turn cautious on valuations

Hong Kong’s lived-in home prices dropped by the most in 14 months in October after peaking in August, with buying sentiment cooling as banks become more cautious in valuating property.

Prices fell 0.85 per cent to 394.8 last month, according to an index published by the Rating and Valuation Department on Friday.

It was the sharpest drop since August 2020 when it retreated by 0.88 per cent, according to property consultancy Knight Frank. It was the second consecutive monthly decline since the index hit an all-time high in August, according to the government’s latest revised data.

“The October data reflects the situation before [Carrie Lam’s] Policy Address as buyers adopted a wait-and-see attitude,” said Martin Wong, head of research and consultancy in Greater China at Knight Frank.

He said buyers were shifting their focus to new homes as developers continue to offer discounts and flexible financial plans to drum up sales.

The fall in home prices came as Centa Valuation Index (CVI), a weekly gauge which tracks major banks’ valuations for used homes in 133 housing estates compiled by Centaline Property Agency, fell to 29.89 points for the week ended November 21. It was the lowest since the CVI plunged to 18.88 points in March 2020. The CVI slipped below 60 points in the first week of October and has continued to slide since.

A CVI below the 40-point threshold represents banks’ bearish view on the market while above 60 points indicates a bullish trend.

“The index indicates banks tend to lower the property valuation when they extend a mortgage loan, as they believe home prices will continue to soften,” said Wong Leung-sing, senior associate director of research at Centaline.

HSBC, Industrial and Commercial Bank of China (Asia) and other major banks have stopped offering mortgage loans for unfinished flats built by China Evergrande, the mainland’s most indebted property developer, in Hong Kong since July.

Evergrande, struggling with US$305 billion of debt, currently has two residential projects under construction: phase two of Emerald Bay in Tuen Mun and The Vertex in Cheung Sha Wan.

Leung said banks have turned more conservative after the US Federal Reserve planned to reduce its bond-buying programme.

Early this month, Fed chairman Jerome Powell said the purchases of treasuries and mortgage-backed securities would be scaled back by US$15 billion a month.

“It is a sign that interest rates will rise,” said Centaline’s Wong, adding that it would dampen home-buying sentiment.

Meanwhile, transactions of secondary residential transactions continued to decline for the sixth month in a row in October, with the number of deals at 3,656, the lowest since August 2020 when 3,441 deals were concluded, according to data from Midland Realty.

Sales of new homes also fell 34 per cent month on month in October to 1,273 deals.

Still, Hong Kong’s lived-in home prices have risen 3.9 per cent so far this year, with flats between 753 square feet and 1,075 sq ft gaining the most at 4.5 per cent.

Home prices in the city are likely to increase 0.5 per cent this month as Lam’s policy speech did not have any cooling measures to curb price growth, said Derek Chan, head of research at Ricacorp Properties.

“The reopening of the border with the mainland next month is likely to boost the lived-in home price index to a new high and go past the 400-point mark,” said Derek Chan, head of research at Ricacorp.

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

India's postal service now comes bearing fintech services to stay relevant

Praveen Gupta and Vijender Kumar (name changed on request) have something in common – the post office. Gupta is a government pensioner who has been using the post office for ... Read more »

Many technical professionals needed to achieve climate goals in construction

Photo: ANP To achieve the climate goals in the construction sector, technical professionals are especially needed. This concerns, for example, mechanics who can install insulation, solar panels and heat networks, ... Read more »

Nifty Auto vrooms on the back of Hero MotoCorp; Maruti Suzuki zooms on price hikes

The Maruti Suzuki India share price gained over 2 percent in the morning session on January 17 after the auto major announced a price hike across models owing to increase in ... Read more »

Nike Jordan golf shoes cause huge commotion in S. Korea as customers lineup to get them first

Photo by: wu yi/Unsplash Nike dropped a limited edition Nike Jordan golf shoes, and it literally caused chaos in South Korea. The sneaker stores across the country where the new ... Read more »

Banking Central | HDFC Bank numbers send a good signal to the industry

File image of HDFC Bank Signals emerging on the bad loan front in the banking sector are encouraging. The third-quarter earnings report presented by HDFC Bank, the country’s largest private sector lender, ... Read more »

US and China, in separate corners, wrestle with cryptomania's excesses

The craze has inspired Selfiecoins, Potcoins and UFOCoins, fuelled a failed bid to buy a rare copy of the US Constitution, inspired legions of confusing jargon and prompted dozens of ... Read more »

Climate change: Renewable energy to meet over 70 per cent of China's additional power needs in next three years, says IEA

Renewable energy will meet over 70 per cent of China’s additional electricity demand in the next three years as coal’s role in powering the world’s second largest economy continues to ... Read more »

This Week: Housing starts, Netflix earns, leading indicators

A look at some of the key business events and economic indicators upcoming this week: HOUSING MARKET BELLWETHER New government data on residential construction should provide insight into the state ... Read more »

Indian rupee trades in a narrow range in early session against US dollar

Representative image The Indian rupee was trading in a narrow range in morning trade on Monday as elevated crude oil prices negated the impact of positive domestic equities. At the ... Read more »

Glenmark Pharma gets tentative USFDA nod for generic Regadenoson injection

Glenmark Pharmaceuticals on Monday said its US arm has received tentative approval from the country’s health regulator for its generic Regadenoson injection. Regadenoson injection is given during the preparation for ... Read more »

Athena Global Consolidated December 2021 Net Sales at Rs 3.75 crore, down 40.96% Y-o-Y

Reported Consolidated quarterly numbers for Athena Global Technologies are: Net Sales at Rs 3.75 crore in December 2021 down 40.96% from Rs. 6.36 crore in December 2020. Quarterly Net Loss ... Read more »

HDFC Bank Consolidated December 2021 Net Interest Income (NII) at Rs 19,864.00 crore, up 14.63% Y-o-Y

Reported Consolidated quarterly numbers for HDFC Bank are: Net Interest Income (NII) at Rs 19,864.00 crore in December 2021 up 14.63% from Rs. 17328.92 crore in December 2020. Quarterly Net ... Read more »

HCL Tech Consolidated December 2021 Net Sales at Rs 22,331.00 crore, up 15.69% Y-o-Y

Reported Consolidated quarterly numbers for HCL Technologies are: Net Sales at Rs 22,331.00 crore in December 2021 up 15.69% from Rs. 19,302.00 crore in December 2020. Quarterly Net Profit at ... Read more »

Shiva Global Consolidated December 2021 Net Sales at Rs 188.17 crore, up 25.3% Y-o-Y

Reported Consolidated quarterly numbers for Shiva Global Agro Industries are: Net Sales at Rs 188.17 crore in December 2021 up 25.3% from Rs. 150.18 crore in December 2020. Quarterly Net ... Read more »

Omicron variant found in 85 samples in Uttarakhand

Representational image Uttarakhand has reported 85 new cases of the Omicron variant of COVID-19. Genome sequencing reports of 159 COVID-19 samples confirmed the Omicron variant in 85 on Sunday, Director ... Read more »

Netflix imposes price increase for subscriptions in US, Canada

Photo by: Cameron Venti/Unsplash Netflix announces a price hike for its subscription service in the United States and Canada. This is the first time that the streaming giant has raised ... Read more »

Australia PM Scott Morrison blames Omicron for testing woes as COVID-19 cases hit downward trend

Australian Prime Minister Scott Morrison said on Monday the shortages of at-home antigen tests were “not unique” to the country as authorities deal with a runaway Omicron outbreak that has ... Read more »

Coronavirus Update | India records 2,58,089 new COVID-19 cases, 385 deaths; positivity rate 19.65%

Source: AP India saw a single-day rise of 2,58,089 new coronavirus infections taking the tally of cases to 3,73,80,253, which included 8,209 cases of the Omicron variant detected so far, ... Read more »

Amazon Great Republic Day 2022: OnePlus 9RT goes on sale

OnePlus 9RT specifications include a Snapdragon 888 SoC, a 4500 mAh battery with 65W fast charging. OnePlus 9RT is available during the Amazon Great Republic Day Sale that got underway ... Read more »

HDFC Bank gets growth back in Q3 but fees need a fix

File image of HDFC Bank HDFC Bank Ltd, India’s most valuable private sector lender is on its way back to delivering above-average balance sheet growth with pristine asset quality it ... Read more »

Macau's casino giants rally after gaming bill revealed

Macau’s multi-billion-dollar casino industry got a major boost on Friday when new regulations proved less punishing than expected. HONG KONG: Shares in Macau's casino giants surged Monday morning after the ... Read more »

Factors impacting two-wheeler insurance purchase

Gurdeep Singh Batra Our two-wheeler holds a special place in our life; it is convenient to use, affordable, and easy to maintain. For many of us, our two-wheeler is the ... Read more »

Onward Tech Consolidated December 2021 Net Sales at Rs 77.26 crore, up 33.61% Y-o-Y

Reported Consolidated quarterly numbers for Onward Technologies are: Net Sales at Rs 77.26 crore in December 2021 up 33.61% from Rs. 57.83 crore in December 2020. Quarterly Net Profit at ... Read more »

Telenor to sell Wave Money stake to Yoma in move to exit Myanmar

Telenor Group agreed to sell a remaining 51% stake in a mobile financial services provider in Myanmar in a deal that will see Norway’s biggest telecommunications firm move a step ... Read more »

Vishwaraj Sugar Standalone December 2021 Net Sales at Rs 133.28 crore, up 61.06% Y-o-Y

Reported Standalone quarterly numbers for Vishwaraj Sugar Industries are: Net Sales at Rs 133.28 crore in December 2021 up 61.06% from Rs. 82.75 crore in December 2020. Quarterly Net Profit ... Read more »

MOEX index up 0.92% to 3,630 points at trade start

The price of Brent crude oil futures for March 2022 delivery was up by 0.10% at $81.15 per barrel on London’s ICE Read more »

Google doodle urges people to get vaccinated, wear mask, save lives

The animated doodle shows letters G,O,O and G sporting bandages apparently after getting a vaccine shot. E, who is dressed as a medical practitioner gives a vaccine to L after ... Read more »

Mega Corp Standalone December 2021 Net Sales at Rs 0.83 crore, up 29.76% Y-o-Y

Reported Standalone quarterly numbers for Mega Corporation are: Net Sales at Rs 0.83 crore in December 2021 up 29.76% from Rs. 0.64 crore in December 2020. Quarterly Net Profit at ... Read more »

Urja Global Standalone December 2021 Net Sales at Rs 9.30 crore, down 72.46% Y-o-Y

Reported Standalone quarterly numbers for Urja Global are: Net Sales at Rs 9.30 crore in December 2021 down 72.46% from Rs. 33.77 crore in December 2020. Quarterly Net Profit at ... Read more »

AB Money Standalone December 2021 Net Sales at Rs 60.27 crore, up 23.51% Y-o-Y

Reported Standalone quarterly numbers for Aditya Birla Money are: Net Sales at Rs 60.27 crore in December 2021 up 23.51% from Rs. 48.79 crore in December 2020. Quarterly Net Profit ... Read more »

Onward Tech Standalone December 2021 Net Sales at Rs 59.56 crore, up 94.55% Y-o-Y

Reported Standalone quarterly numbers for Onward Technologies are: Net Sales at Rs 59.56 crore in December 2021 up 94.55% from Rs. 30.61 crore in December 2020. Quarterly Net Profit at ... Read more »

Swasti Vinayaka Standalone December 2021 Net Sales at Rs 5.01 crore, down 0.18% Y-o-Y

Reported Standalone quarterly numbers for Swasti Vinayaka Synthetics are: Net Sales at Rs 5.01 crore in December 2021 down 0.18% from Rs. 5.02 crore in December 2020. Quarterly Net Profit ... Read more »

Hero MotoCorp share price surges 5% on stake hike in Ather Energy

Representative image Hero MotoCorp share price gained 5 percent in the early trade on January 17 after the company announced a investment of up to Rs 420 crore in Ather ... Read more »

Richirich Inven Standalone December 2021 Net Sales at Rs 0.02 crore, down 29.5% Y-o-Y

Reported Standalone quarterly numbers for Richirich Inventures are: Net Sales at Rs 0.02 crore in December 2021 down 29.5% from Rs. 0.03 crore in December 2020. Quarterly Net Loss at ... Read more »

Investing steps for making money systematically in 2022

Since March 2020, when the stock markets dipped big time, there has been an equally fast rebound in asset values. What emerges is a kind of consensus that no matter ... Read more »

HCL Tech Standalone December 2021 Net Sales at Rs 10,662.00 crore, up 13.38% Y-o-Y

Reported Standalone quarterly numbers for HCL Technologies are: Net Sales at Rs 10,662.00 crore in December 2021 up 13.38% from Rs. 9,404.00 crore in December 2020. Quarterly Net Profit at ... Read more »

HDFC Bank Standalone December 2021 Net Interest Income (NII) at Rs 18,443.48 crore, up 13.03% Y-o-Y

Reported Standalone quarterly numbers for HDFC Bank are: Net Interest Income (NII) at Rs 18,443.48 crore in December 2021 up 13.03% from Rs. 16317.61 crore in December 2020. Quarterly Net ... Read more »

Shiva Global Standalone December 2021 Net Sales at Rs 33.06 crore, up 7.46% Y-o-Y

Reported Standalone quarterly numbers for Shiva Global Agro Industries are: Net Sales at Rs 33.06 crore in December 2021 up 7.46% from Rs. 30.76 crore in December 2020. Quarterly Net ... Read more »

Gold Prices Today: Yellow metal likely to remain volatile, buy on dips

Gold prices eased on January 17 in international markets as US Treasury yields gained on hawkish signals from the Federal Reserve and markets began to price in a sooner-than-expected reduction ... Read more »

Stepping down as Test captain, is it the last straw for brand Virat Kohli?

Under Kohli’s leadership, India advanced to the finals of the World Test Championship (WTC) in 2020, but lost a keenly contested game to New Zealand. Virat Kohli’s decision to quit ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic