By Kelvin Wong
Dec. 9 (Bloomberg) -- Hong Kong’s luxury home sales fell in both quantity and value in November from a month earlier, as the slowing economy hurt the purchasing power of the wealthy.
Transactions of apartments and houses valued at more than HK$10 million ($1.3 million) fell 34 percent to 92 last month, with the deal value tumbling 62 percent to HK$2.08 billion, according to figures compiled by realtor Centaline Property Agency Ltd. Both numbers are the lowest since September 2003, the agency said in a press release yesterday.
Homebuyers and banks may be concerned both about Hong Kong’s economy, which contracted 0.5 percent in the third quarter to put the city in its first recession since 2003, and the jobless rate, which rose to 3.5 percent in October. The benchmark Hang Seng Index has declined 46 percent this year. Banks have raised mortgage rates, making financing home purchases more expensive.
“Both end-users and investors are very cautious,” said Wong Leung-sing, an associate research director at Centaline. “But with strong sales figures from some new projects lately we may see the number of transactions picking up over the next few weeks.”
Sun Hung Kai Properties Ltd., Hong Kong’s biggest builder by market value, sold more than 400 units at its luxury Peak One residential project in the Sha Tin suburban district north of the city center in the 10 days after sales started, the Hong Kong Economic Times reported yesterday.
To contact the reporter on this story: Kelvin Wong in Hong Kong at kwong40@bloomberg.net
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