HONG KONG private home prices dropped at a faster pace in February to their lowest since January 2021, official data showed yesterday, as the Asian financial hub was hit by a new wave of COVID-19 infections.

Prices declined 2.08% last month, according to the data, the biggest drop since November 2018, and compared with a revised fall of 0.89% in January.

Hong Kong, a major regional financial hub, this month was again ranked by survey company Demographia as the world’s most unaffordable housing market for the 12th consecutive year.

Home prices started consolidating after reaching an all-time high in September. They have stayed largely resilient through the pandemic over the past two years, supported by robust demand and lower interest rates.

The pace of price declines accelerated last month, as COVID-19 infections surged and Hong Kong’s government rolled out some of the most stringent social restrictions in the world since January, affecting many businesses and driving property agents to lower their full-year price forecast.

Real estate consultancy Cushman & Wakefield expected home transaction volume would drop nearly 50% in the first quarter from a year ago, to the lowest since 2016. (SD-Agencies)