Hong Kong Property Market Hits Historic Lows Amid Economic Gloom
-
Hong Kong property investors are the most pessimistic globally, with a -11% net buying intention in a CBRE survey. Sentiment dropped sharply from +9% in 2022.
-
Bearishness is driven by high interest rates, economic weakness, and weak demand. 50% of investors intend to sell, the highest since 2014.
-
Property transactions fell to a 33-year low in HK in 2022. Office rents fell 5.6% and vacancies are at unprecedented levels.
-
60% of investors expect rates to remain high in 2024. Sluggish HK economy also hurting real estate demand.
-
HK secondary home prices dropped 5.6% in 2022 to lowest since 2015, forcing developers to cut prices. But recovery expected in 2024.