Coronavirus fears will further slow Hong Kong’s sluggish construction work, say analysts, as property transactions slump to 13-month low
- As the rapidly-spreading coronavirus further dampens market sentiment, developers will have even less incentive to finish units, say experts
- Completion of new flats fell 35 per cent last year as months of civil unrest and the effects of the trade war dampened demand for homes
Property transactions in Hong Kong fell to a 13-month low as analysts warned the coronavirus outbreak is likely to further derail the world’s most expensive housing market.
The value of all properties changing hands in January dropped 17 per cent to HK$29 billion, while the number of transactions slipped to 3,776 from 3,908 a month earlier, the Land Registry revealed on Tuesday.
Meanwhile, data from the Transport and Housing Bureau showed a total of 13,600 new flats were built last year, the lowest number since 2015.
That was a drop of 35 per cent from the previous year, as developers held back in a housing market rocked by months of social unrest, the effects of the US-China trade war, and an impending vacancy tax that would penalise them for harbouring unoccupied, finished apartments.
Now the viral outbreak that started in Wuhan, China, and has infected at least 15 people in Hong Kong looks set to further dampen sentiment in the world’s most expensive property market.
