Prices of lived-in homes rose marginally for the second straight month in November, as the closely watched gauge edged upwards to 290.9 from 290.7 in October, according to the Rating and Valuation Department. Home prices fell 6.55 per cent in the first 11 months of the year, slumping 27 per cent from a record high in September 2021.
Rents dipped last month for the second time, dropping by 0.36 per cent to a five-month low of 193.1, after a 0.7 per cent drop in October. Rents have risen 3.8 per cent in the first 11 months of this year.
“Residential prices have stabilised after declining for five consecutive months,” said Eddie Kwok, executive director for valuation and advisory services at CBRE Hong Kong, adding that a clearer outlook for home prices is likely to emerge after the Lunar New Year festivities next month.
Last month, HSBC, Hang Seng Bank and Bank of China (Hong Kong) cut their prime lending rate for the second time this year to a two-year low of 5.375 per cent. Standard Chartered, Bank of East Asia and ICBC (Asia) also dropped their rate to 5.625 per cent, resulting in lighter mortgage rates for homebuyers.
“Since the US Federal Reserve began its interest rate reduction cycle in September, the average monthly residential transaction volume for October and November reached 5,498, surpassing the average transaction volume recorded between 2017 and 2021,” said Kathy Lee, head of research at Colliers Hong Kong.