Hong Kong property developers saw the lowest sales since 2019 for new residential units completed as expensive borrowing costs weigh on the market.
(Bloomberg) — Hong Kong property developers saw the lowest sales since 2019 for new residential units completed as expensive borrowing costs weigh on the market.
Builders sold just 55% of apartments completed in the first six months, compared with the average sell-through rate of 78% in the last five years, according to data from real estate agency JLL.
The slowdown in residential sales “reflects most buyers have adopted a wait-and-see attitude and are reluctant to buy flats as they anticipate housing prices will drop,” said Norry Lee, a senior director at JLL in a statement. “The new mass residential projects have to offer a bigger discount to lure buyers.”
CK Asset Holdings Ltd. has been selling apartments this month at the lowest price in seven years, pressuring other developers to follow suit in a competitive market.
Higher interest rates have deterred buyers from entering the market, with secondary home prices dropping to February levels after a brief recovery. JLL forecasts average home values to drop as much as 10% in the second half.
–With assistance from Ka Ho Cheuk.
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