Hong Kong’s Land Registry recorded a 43.6% drop in sale and purchase agreements for all building units in October compared to last year.
According to the local Land Registry, 4,491 sale and purchase agreements for all building units were recorded in October this year, showing a 17.9% reduction compared with September and 43.6% year-on-year, announced on Tuesday.
Among the sale and purchase agreements, 3,300 were for residential units, down 22.6% on the previous month and 46.7% compared to October 2014.
‘It is the worst results for October since we started recording data in 1991.’
– Buggle Lau, Chief Analyst at Midland Realty.
Chief executive Leung Chun-ying stated that he will continue to increase land supply for residential flats and maintain restrictive measures on overseas buyers despite the disappointing figures.
Analysts predict that worse is still to come. They predict that Hong Kong home prices will start to fall by 2016, with some expecting a decline of up to 30% by 2017, as interest rates rise, supply increases and the local economy deteriorates.
Investment bank Barclays has revealed that home prices are already down by 2.7% compared to their mid-September peak.