Alignment of expectation from home buyers and sellers quickens the price adjustment
Recent months have seen the interest rate hike weigh on the residential market, along with the elevated mortgage rates and requirement on minimum income. This has widened the price expectation between home buyers and sellers. The quarterly transaction volume in the second-hand residential market has recorded a decline of 32.3% YoY Q2 2022.
- Only 5.7% of residential transactions with buyer’s stamp duty were charged to non-citizens
- Private domestic sales are mainly dominated by local residents
- 26% of deals for small-sized flats of less than 400 sq. ft. recorded a 5% to 20% discount
- We expect home prices to further contract in 2022 by 10% to 12% YoY