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04 December 2023

HK luxury property prices collapse in Q4

Victoria Peak is perched above the skyscrapers of Hong Kong and is a favourite for the city's wealthy elite. (AFP)


Property prices at Hong Kong's most-prestigious location – Victoria Peak – plunged 41.4 per cent in the last quarter of 2008, a consultant group said yesterday.

The percentage drop compared to the third quarter was the largest for any luxury residential areas on Hong Kong island, CB Richard Ellis said in its report.

The plunge in prices at the scenic location was blamed on collapsing confidence during the economic downturn.

"Hong Kong's economy has decelerated markedly in the fourth quarter as investment sentiment and consumer confidence plummeted significantly due to the global credit crunch," the report said. Property prices for all luxury properties on Hong Kong Island fell 35.4 per cent in the final quarter, the report found.

The fall was also the biggest on record in Hong Kong's luxury real estate market, even worse than during the Asian financial crisis in 1997-1998, said the South China Morning Post.

The total number of transactions worth HK$10 million (Dh4.7m) in Hong Kong amounted to only 575 in the fourth quarter last year, compared to 2,807 transactions over the same period in 2007, CBRE said.