Hong Kong home prices end 13-month upswing as mainland Chinese tax fears weigh on demand

Advertisement Hong Kong home prices end 13-month upswing as mainland Chinese tax fears weigh on demand Housing rally stalls in July as mainland Chinese tax risks curb demand, analysts say, raising doubts over market’s near-term outlook 3-MIN READ3-MIN Hong Kong’s lived-in home prices fell 0.46 per cent in July, halting a 13-month upswing, according to the latest official data. The index tracking second-hand homes slipped to 321.5 in July from 323 in June, Rating and Valuation Department (RVD) data showed on Thursday. It was the first decline in 16 months – since April last year. Prices were flat in May last year before climbing steadily for 13 months from June. “As residential property prices have increased by 7.3 per cent year to date, further upside is expected to be limited in the short term,” said Eddie Kwok, executive director for valuation and advisory services at CBRE Hong Kong. “The residential market is likely to enter a consolidation phase in the coming months.” Since the trough in March last year, when prices had lost more than 28 per cent from their September 2021 peak, the index had recovered 13.37 per cent by June, data showed. “Corrections in the Hong Kong stock market may affect investor sentiment, while controls on outbound investment from mainland China could reduce capital flows into Hong Kong’s property market,” Kwok said. “Taken together, these factors are expected to dampen investment demand.” Advertisement Select Voice Select Speed 1.00x [Image text:] KC 527R 681 528 527 609 253 343 380 0 95 588 672 780 539 580 603 713 968 918 3I0 594 TARF 1120 385 1160 1470 1600