Hong Kong Housing: Recovery Isn’t There Yet

June 6, 2016

By Myn

The Rating and Valuation Department reported the general price index for private homes in Hong Kong rose 0.7% in April. This was the first recovery after the 6-month decline. However, Henderson Land Development’s boss was not very positive about the real estate market yet.

HK - Housing Jun 6

Billionaire Lee Shau-kee, the second richest man in Hong Kong and the owner of Henderson Land Development, said he expected more pressures for home prices in Hong Kong.

“It will drop another 10% or probably less before hitting the bottom”, he said. According to government data, home prices fell 10.78% from its peak in September 2015.

He also urged buyers to take advantages of home unit discount because the price is unlikely to drop sharply due to high constructing costs. The developers offered  home loans about 80-95% of the flat’s value without many requirements such as income evidence. Henderson Land Development was also among the developers offering mortgage.

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