Hong Kong's Home Market Suffering Worst Declines Since 2016

(Bloomberg) -- Hong Kong’s housing market is suffering its worst declines since 2016 -- by multiple measures.

New-home sales this month are on track to be the lowest by volume since January or February of that year, according to Midland Realty data.

Meanwhile, used-home prices have fallen for eight weeks, the longest losing streak since 2016, according to the Centa-City Leading Index.

In addition, used-home prices have this month recorded the biggest single-week decline since March 2016, falling 1.3 percent week-on-week, the data show.

Anecdotal evidence, such as reports of slow sales at a Country Garden Holdings Co. project, is also fueling speculation that the world’s least affordable housing market is heading for a correction. So far, secondary home prices have dipped five percent from an August high.

Goldman Sachs Group Inc. is forecasting a 15 to 20 percent decline over two years as the city’s interest rates rise in tandem with the U.S., according to a research report handed out at a press briefing on Monday.

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