The world’s least affordable housing market is in a rut.
Hong Kong home prices have fallen more than 6 per cent since a peak in August, with no quick recovery in sight.
Some analysts are predicting another 20 per cent slump by 2025 due to rising mortgage rates and a slowing economy. Even habitually bullish local real estate agents are expecting that prices will be sluggish for most of the year.
Sales activity dripped to a two-year low and Covid-19 restrictions have put a damper on viewings. Property owners are hoping the dip isn’t a sign of more pain to come.
“I have never seen the property market as quiet in more than 15 years of buying and selling,” said Ada Chan, 42, who is trying to sell her three-bedroom apartment near the University of Hong Kong. The place has been on the market for more than a year.
Ms Chan bought the 500-square-foot apartment for HK$17 million ($2.17m) in 2018, and she thought it would be worth HK$18.5m when she listed it. Now, she’s willing to take what she paid.
“I’m just hoping it to be a tie game,” she said.
“The market has mostly priced in impact from Covid,” Ms Chan said. “It is the economic uncertainties which make buyers hesitant, like the interest rate hikes.”
But Ivan Wong, sales director at property agency United Properties, thinks the recent downward trend is entirely Covid-19 related. He thinks there is pent-up demand that will speed up transactions in the coming weeks.
“There are too many unknowns to move property prices up in the short term,” Mr Wong said, adding that he sees potential upside in the fourth quarter.
Hong Kong is one of a number of cities in Asia where the property boom appears to be on ice, and Hong Kong’s currency peg to the dollar means local rates will climb as the US hikes. Meanwhile, home prices in the US and UK have continued to soar in the face of rising mortgage rates.
Sellers aren’t used to taking a hit on their investment in Hong Kong property, after a remarkable run over the past two decades. Home values in the city increased 449 per cent since a trough in 2003, compared with about 100 per cent in the US.
Last year, an apartment in the exclusive Peak area set a record when it was sold for HK$640m.
Many will still do well. More than 95 per cent of apartments sold in January went for more than the owner originally paid, although it was the lowest figure since 2010, according to Ricacrop Properties.
That means some will still be satisfied taking less than they had hoped for.
David Gibson, a 49-year-old logistics expert from New Zealand, bought his two-bedroom apartment in Mid-Levels in 2013 for HK$12.5m, then spent HK$1.4m on renovations. He listed the 1,300 square foot apartment for HK$24.5m in December, but he has only had 10 viewings since then and no offers.
“It’s been the worst possible time to put the house on the market,” he said.
The shrinking pool of potential buyers isn’t making things any easier.
Eagle Fung is one of the many Hong Kong residents leaving. A retiree in her late 50s, Ms Fung dropped the price on her apartment in Kowloon to HK$4.4m. She wants to sell before moving to the UK with her family in the summer.
She’s willing to drop the price a few per cent, which will still provide a hefty profit, given that she bought the property for less than a quarter of what she’s asking. She hasn’t received any offers that she considers reasonable.
In a city where apartments barely bigger than a parking space sell for $645,000, and parking spots alone go for more than $1m, officials are racing to build to ease the supply crunch.
The number of new homes built in Hong Kong this year may surge to the highest level since 2005, according to Bloomberg Intelligence. And there are plans for an entire new mega-district in the north that would house 2.5 million people.
The dip in prices is providing an opportunity for buyers. Greg Cheung, 37, is looking to buy his first property in the city. He wants to stop wasting money on rent and sees real estate as a safer bet than stocks.
His optimism has slipped, but he thinks that Hong Kong’s fundamentals will keep it competitive.
What is graphene?
Graphene is extracted from graphite and is made up of pure carbon.
It is 200 times more resistant than steel and five times lighter than aluminum.
It conducts electricity better than any other material at room temperature.
It is thought that graphene could boost the useful life of batteries by 10 per cent.
Graphene can also detect cancer cells in the early stages of the disease.
The material was first discovered when Andre Geim and Konstantin Novoselov were 'playing' with graphite at the University of Manchester in 2004.
CHINESE GRAND PRIX STARTING GRID
1st row
Sebastian Vettel (Ferrari)
Kimi Raikkonen (Ferrari)
2nd row
Valtteri Bottas (Mercedes-GP)
Lewis Hamilton (Mercedes-GP)
3rd row
Max Verstappen (Red Bull Racing)
Daniel Ricciardo (Red Bull Racing)
4th row
Nico Hulkenberg (Renault)
Sergio Perez (Force India)
5th row
Carlos Sainz Jr (Renault)
Romain Grosjean (Haas)
6th row
Kevin Magnussen (Haas)
Esteban Ocon (Force India)
7th row
Fernando Alonso (McLaren)
Stoffel Vandoorne (McLaren)
8th row
Brendon Hartley (Toro Rosso)
Sergey Sirotkin (Williams)
9th row
Pierre Gasly (Toro Rosso)
Lance Stroll (Williams)
10th row
Charles Leclerc (Sauber)
arcus Ericsson (Sauber)
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
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The Matrix Resurrections
Director: Lana Wachowski
Stars: Keanu Reeves, Carrie-Anne Moss, Jessica Henwick
Rating:****
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
UAE currency: the story behind the money in your pockets
Six things you need to know about UAE Women’s Special Olympics football team
Several girls started playing football at age four
They describe sport as their passion
The girls don’t dwell on their condition
They just say they may need to work a little harder than others
When not in training, they play football with their brothers and sisters
The girls want to inspire others to join the UAE Special Olympics teams
UAE currency: the story behind the money in your pockets
Gothia Cup 2025
4,872 matches
1,942 teams
116 pitches
76 nations
26 UAE teams
15 Lebanese teams
2 Kuwaiti teams
Founders: Abdulmajeed Alsukhan, Turki Bin Zarah and Abdulmohsen Albabtain.
Based: Riyadh
Offices: UAE, Vietnam and Germany
Founded: September, 2020
Number of employees: 70
Sector: FinTech, online payment solutions
Funding to date: $116m in two funding rounds
Investors: Checkout.com, Impact46, Vision Ventures, Wealth Well, Seedra, Khwarizmi, Hala Ventures, Nama Ventures and family offices
more from Janine di Giovanni
Killing of Qassem Suleimani
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SPECS
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Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Bawaal%20
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The Facility’s Versatility
Between the start of the 2020 IPL on September 20, and the end of the Pakistan Super League this coming Thursday, the Zayed Cricket Stadium has had an unprecedented amount of traffic.
Never before has a ground in this country – or perhaps anywhere in the world – had such a volume of major-match cricket.
And yet scoring has remained high, and Abu Dhabi has seen some classic encounters in every format of the game.
October 18, IPL, Kolkata Knight Riders tied with Sunrisers Hyderabad
The two playoff-chasing sides put on 163 apiece, before Kolkata went on to win the Super Over
January 8, ODI, UAE beat Ireland by six wickets
A century by CP Rizwan underpinned one of UAE’s greatest ever wins, as they chased 270 to win with an over to spare
February 6, T10, Northern Warriors beat Delhi Bulls by eight wickets
The final of the T10 was chiefly memorable for a ferocious over of fast bowling from Fidel Edwards to Nicholas Pooran
March 14, Test, Afghanistan beat Zimbabwe by six wickets
Eleven wickets for Rashid Khan, 1,305 runs scored in five days, and a last session finish
June 17, PSL, Islamabad United beat Peshawar Zalmi by 15 runs
Usman Khawaja scored a hundred as Islamabad posted the highest score ever by a Pakistan team in T20 cricket
THE BIO
Ms Al Ameri likes the variety of her job, and the daily environmental challenges she is presented with.
Regular contact with wildlife is the most appealing part of her role at the Environment Agency Abu Dhabi.
She loves to explore new destinations and lives by her motto of being a voice in the world, and not an echo.
She is the youngest of three children, and has a brother and sister.
Her favourite book, Moby Dick by Herman Melville helped inspire her towards a career exploring the natural world.
Singham Again
Director: Rohit Shetty
Stars: Ajay Devgn, Kareena Kapoor Khan, Ranveer Singh, Akshay Kumar, Tiger Shroff, Deepika Padukone
Rating: 3/5
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Poacher
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F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
