A stunning reversal across various global real estate hubs which have served as focal points for both international investors and criminal oligarchs, has made itself clear over the past several months. I’ve highlighted plunging sales and prices in high-end London, a multi-month slowdown in Manhattan’s luxury market, as well as a burst bubble in mansion prices in various articles over the last several months. We now have another region to add to the list: Hong Kong.
Bloomberg reports:
In a city that saw demand propel property prices to a record last year, the estimate that transactions reached a 25 year-low in Hong Kong shows how quickly sentiment has turned.
Home prices have slumped almost 10 percent since September and monthly sales in January fell to the lowest since at least 1991, according to Centaline Property Agency Ltd. Amid a spike in flexible mortgage rates this month and anemic demand for new developments, the low transactions volume for January is the latest evidence that prices have further to fall.
Talk about a reversal.
Developers are showing caution too, which could further weaken the outlook for the property market. According to Bloomberg Intelligence, two out of three government attempts to sell residential land sites through tenders since November failed after bids failed to match the minimum price.
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