From the SCMP:
Home sales in the secondary market remained sluggish over the first weekend after the US interest rate rise, forcing owners to knock down prices by up to HK$1 million to speed up sales, according to agents.
Hong Kong Property Services (Agency) said three transactions were registered in 10 major housing estates it monitored at the weekend, compared with two the previous week.
But even though more owners are willing to cut prices by five to 10 per cent, buyers are still not biting, said Jeffrey Ng, executive director of Hong Kong Property Services (Agency).
The market has been in a holding pattern since the US raised interest rates and would become even quieter this week as many people are travelling abroad during the holiday season, he said.
…“One transaction was concluded before the US rate hike but not a single deal closed after the news. No one wants to buy now as buyers in general believe home prices will fall,” he said.
The number of flat viewing appointments also saw a week-on-week drop of 20 per cent at the weekend, he said.
“The market is even worse than in 2003 when Hong Kong was gripped by the outbreak of the severe acute respiratory syndrome (SARS) epidemic. So far this month, only four deals closed in the 11 major housing estates we monitored , compared 8 to 10 deals in 2003,” he said.
Owing to its dollar-peg, Hong Kong hikes rates when the US does.
