【World Property Journal】Hong Kong Home Prices Predicted to Dip 5 Percent or More in 2019

Hong Kong's current political crisis and economic uncertainty could make almost anyone despair for the future of the property market in this Special Administrative Region of China. But Georg Chmiel, Executive Chairman of Juwai.com, believes things are less serious than they seem.

Mr. Chmiel said, "First, a bit of context. 2018 was a boom year for Hong Kong's residential real estate market. The city once again earned the title of "world's most overvalued housing market." That is because average prices are so high relative to average income.

"Now, in 2019, the market is taking a hit from the trade war and protests. Transaction numbers are falling, prices have stopped climbing, and the number of mainland Chinese buyers seeking property has dropped by 20 per cent.

"Transactions in the secondary market are down sharply, especially for luxury homes. At least two wealthy buyers have had second thoughts to such a degree that they forfeited the large deposits they had already paid. One buyer gave up a deposit of $600,000 (AU$892,000) to get out of a purchase. Another forfeited $255,000 (AU$379,000).
 

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