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.

Hong Kong's Home Market Suffering Worst Declines Since 2016

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

Hong Kong's Home Market Suffering Worst Declines Since 2016

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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