Banks Slash Valuations as Home Market Teeters



POSTED BY Ed (10 days ago)
Banks in Hong Kong are aggressively cutting property valuations as the city’s housing market weakens, threatening to fuel a downward spiral in prices, according to brokerage CLSA Ltd.


Ed (10 days ago)
It would appear that the markets are not liking the end of QE and higher interest rates that this brings....

As has been stated long ago --- the run up in assets has always been about trillions of dollars, Euros, Yen etc.... being pumped into the global economy.... the piper at some point ... needs to be paid....

LIVE: China Shares Fall 5% as Stock Rout Rolls Through Asia

Ed (10 days ago)
Where are the Plunge Protection teams?

Ed (10 days ago)
How Will 6% Mortgage Rates Deal with Housing Bubble 2?

What many in 2016 thought would never happen again is now reality.
It finally happened – a line in the sand has been breached. The average interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) and a 20% down-payment did what people had thought in 2016 we’d never see again: It breached 5%.

It hit 5.05%, to be precise, for the week ending October 5, according to the Mortgage Bankers Association (MBA) this morning. This is the highest average rate since January 5, 2010 (chart via

gdep (9 days ago)
remember during the worst of financial crisis market plunged by 30% ? Stock market is down by 30% form its peak already. Property has barely started. and govt can loosen a lot of measures, SSD,BSD all that shit. Dont think mortgage rate will increase beyond 3.5% in HK. 15% will be good correction and will be waiting for that to snap something up

Ed (9 days ago)
Suddenly, there’s a tinge of fear among sellers in Hong Kong’s property market

A recent wave of price discounting for both residential and commercial properties indicates a softening in sentiment

Signs of a deepening slowdown are beginning to emerge in Hong Kong’s property market, with anecdotal evidence showing more homeowners and office space owners are slashing prices in a bid to exit the market, even as there’s few signs of a broad based downtrend.

A 282 square foot flat at Tak Bo Garden in Kowloon Bay sold on Tuesday for HK$4.33 million (US$552,496), or HK$15,355 per sq ft, 8.8 per cent cheaper than an equivalent sized flat in the same area that sold a week earlier. In comparison to a similar unit sold in May, the price was more than 16 per cent lower.

Another homeowner lost more than HK$2.6 million after holding a 1,725 sq ft unit at The Legend in Jardine's Lookout for 11 years. The unit was bought in 2007 for HK$48.6 million and sold on October 9 for HK$46 million, nearly 12 per cent lower than the owner’s original asking price.

“It is the early stage of a bear market already as we see that more homeowners are cutting prices,” said professor Eddie Hui Chi-man from Polytechnic University's department of building and real estate. “If the trade war and interest rate tightening continues, we may see a worse market in the first quarter of 2019.”

“Buyers who are worried about a further plunge of the market rushed to sell their units and continue to lower their asking prices,” said Derek Chan, head of research at Ricacorp Properties. “The gloomy economic outlook will put more pressure on transactions as well as prices in the fourth quarter.”


Ed (7 days ago)
Sales of newly completed flats flopped for a second consecutive weekend in Hong Kong, as a stock market rout, rising mortgages and the worsening US-China trade war deterred buyers from two newly completed apartment projects in the city.

Nan Fung managed to sell only 100 units, or 20 per cent of the 491 flats offered, at its LP6 project at Lohas Park in Tseung Kwan O as of 5:30pm on Saturday, even after discounting the offers by 19.5 per cent, for an average price of HK$16,006 per square foot. At the One East Coast project at Yau Tong in Kowloon, only 43 of the 130 condominium units on offer were sold, agents said,

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