Hong Kong's discounted properties are on the rise!
The US Real Estate Price Index has fallen for 23 consecutive weeks, reaching a new low in over 7 years! This is mainly due to the poor performance of Hong Kong stocks, which have been repeatedly declining and have had a negative impact on the market. Some owners who are eager to sell have lowered their prices, resulting in an increase in discounted properties and dragging down the confidence index for two consecutive weeks.
According to Zhitong App, on January 22nd, the latest US Consumer Confidence Index was reported at 56.6, a weekly decline of about 2.9%. Liu Jiahui, Chief Analyst at Dolphin Research, pointed out that the poor performance of the Hong Kong stock market, with repeated declines, has had a negative impact on the market. Some owners who are eager to sell have lowered their prices, resulting in an increase in discounted properties, which has dragged down the confidence index for two consecutive weeks.
In terms of Hong Kong property prices, the latest Dolphin Research Property Price Index is reported at 136.38, a weekly decline of 0.12%, marking a 23-week consecutive decline. Compared to four weeks ago, it has fallen by 1.74%, and since the beginning of the year, it has accumulated a decline of 0.86%, reaching a new seven-year low.
In terms of regional breakdown, Hong Kong Island has experienced the largest weekly decline. The latest Dolphin Research Property Price Index for Hong Kong Island is reported at 146.64, a weekly decline of 0.45%, and a 1.19% decline since the beginning of the year. The Dolphin Research Property Price Index for New Territories is reported at 125.19, a weekly decline of 0.17%, and a 1.42% decline for the year so far. On the other hand, the Dolphin Research Property Price Index for Kowloon has slightly increased by 0.06% to 139.5, but has experienced a slight decline of 0.04% for the year.
According to the discount rate reflected on the Dolphin Research Property website, among the three regions in Hong Kong, the New Territories has the highest discount rate. If we divide it into smaller districts, the top three districts with the highest discount rates are Tsuen Wan, North Point Mid-levels, and Four Small Dragons/Lai Chi Kok. In terms of unit area, the units with a practical area of approximately 431 to 752 square feet have the highest discount rate, followed by Class A units with a practical area of approximately 430 square feet or less, and then Class C units with a practical area of approximately 753 to 1075 square feet.