Hong Kong’s protests are damping real estate activity, spurring speculation of a tumble in the city’s notoriously expensive housing market. Prices are likely to prove more resilient than some expect.
Home transactions have dropped by more than half from this year’s peak in May, before the unrest began, to 3,447 in September and 4,001 last month, figures from the Hong Kong Land Registry show. While the series is volatile, that’s about a fifth below the average number of monthly sales in the past five years.
With tear gas and transport disruptions an almost daily occurrence across multiple districts, it’s hardly surprising that potential home buyers have been deterred from viewing apartments. Yet a widely followed index of prices compiled by Centaline Property Agency Ltd has slipped only 4.4% from its high in June. The gauge has actually risen in the past two weeks.