Hong Kong’s Apartment Glut Is Set to Keep Prices Down After Tax Cut
- Market must absorb inventory before values recover, agents say
- Competition also likely to stifle prices even as sales rebound
A lackluster property market in the past year has led to the accumulation of unsold homes.
Photographer: Lam Yik/BloombergThis article is for subscribers only.
Hong Kong’s home sales have roared back to life since the government scrapped extra property taxes last month. A supply glut means a rebound in prices is likely to take much longer.
While property transactions have jumped sharply in the past two weeks, there is little evidence that values are rising, according to property agents and analysts. The abundance of apartments for sale, together with high borrowing costs and a weak economy, is expected to stunt price growth in the coming months.