Global prime property prices cool as Hong Kong leads decline, Knight Frank says
Advertisement
In a survey of 46 cities worldwide, Hong Kong ranked last with a 14.3 per cent decline in prices in the second quarter compared with the same period last year. On a quarterly basis, the city again took the bottom spot with an 11.7 per cent drop.
Average annual growth in housing prices across the nearly four dozen cities slowed to 2.3 per cent in the June quarter, down from 3.5 per cent in the March quarter and below the long-term average of 5.2 per cent. It was the weakest annual growth since the fourth quarter of 2023.
'Prime markets are taking a collective breath,' said Liam Bailey, global head of research at Knight Frank. 'The recovery we have seen over recent quarters was aided by expectations of lower borrowing costs, and with that timeline now pushed out, a cooling in price growth is inevitable.'
'We're seeing a more fragmented market, with some European cities showing surprising strength while former high-flyers in Asia begin to level off,' he said.
Visitors at Canton Tower in Guangzhou, southern China. Photo: Eugene Lee
On a quarterly basis, the overall index showed a decline of 0.1 per cent – a significant slowdown from the 1.3 per cent increase recorded in the first quarter.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
6 hours ago
- South China Morning Post
Hong Kong Ferry buys New Territories retail space for US$33 million from ‘Cassette King'
Hong Kong Ferry Holdings is buying retail shops in the New Territories from Hong Kong's 'Cassette King' David Chan Ping-chi for HK$260 million (US$33 million) as part of an expansion of its property investment business. Prosper Link Investment, a wholly owned subsidiary of the company, entered into a provisional agreement with the seller, Man Hei International Investment, to acquire various shops at Tai Hung Fai (Tsuen Wan) Centre at 55 Chung On Street in Tsuen Wan, Hong Kong Ferry said in a filing with the stock exchange on Tuesday night. The monthly rental and licence fee income in August was around HK$1.22 million, representing an annual gross rental yield of about 5.6 per cent based on the purchase price, the filing said, adding that the purchase would be financed by the group's internal resources. 'The group currently intends to hold the property for investment purposes to receive rental and licence income after completion,' the filing said. 'The acquisition is in line with the group's strategy and represents an expansion of the group's existing property investment business. 'Considering the prime location of the property in Tsuen Wan and the existing tenancies and licences, the board believes that the acquisition could derive rental income and enhance its income base.'
South China Morning Post
6 hours ago
- South China Morning Post
Swire Properties set to start selling Hong Kong's largest residential project in 20 years
Swire Properties, one of Hong Kong's largest developers, is set to start selling homes in its 850-unit, three-tower project on Hong Kong Island, its largest residential development in 20 years. Advertisement The company, one of the city's largest commercial landlords, said it would unveil the price list for the flats, which range from one to three bedrooms with areas from 400 sq ft to 1,400 sq ft, in the coming days. The project is developed jointly by Swire Properties and China Motor Bus Company. The launch of The Headland Residences in Chai Wan, which would have two phases, came at a good time, according to Adrian To, director of residential at Swire Properties. 'We have topped out the development already, and the market sentiment has improved quite a bit in the past six months,' he said in a press briefing on Wednesday, noting 'strong responses' from potential homebuyers that visited the project's showroom. The project is one of the largest residential projects on Hong Kong Island in recent years. Advertisement Last year, CK Asset Holdings launched the 1,200-unit Blue Coast project in the island's southern Wong Chuk Hang district. In January, New World Development launched the 388-unit State Pavilia, the first phase of its redevelopment project at the site of the former State Theatre in North Point. The city's housing market has shown early signs of recovery. Buying interest in the first-hand market improved in the first seven months of the year, with 5,981 flats sold, according to Midland Realty.
South China Morning Post
7 hours ago
- South China Morning Post
Singapore's Temasek mulls major overhaul to boost returns
Singapore 's Temasek Holdings is mulling one of its biggest overhauls in years, potentially reorganising the firm into three investment vehicles in a bid to boost returns and efficiencies, according to people familiar with the matter. Advertisement Under the proposal still being discussed at senior levels, Singapore's state-owned investor could divide its business into three arms. One would focus on Temasek 's biggest domestic holdings, such as Singapore Airlines , and another would oversee largely foreign investments. A third unit would include all of Temasek's fund investments, said the people who asked not to be identified, discussing a private matter. The move, which remains fluid and subject to change, would fundamentally restructure the 51-year-old investment giant amid rising pressure to deliver higher returns and streamline its operations. While Temasek's net portfolio value hit a record high of S$434 billion (US$338 billion) as of March 31, its 10-year total shareholder return of 5 per cent – a compounded and annualised measure that includes dividends – just matched that of its larger but more conservative Singaporean peer GIC Pte. It underperformed the MSCI World Index, which returned an annualised 10 per cent in the decade through March 2025. Temasek is currently run in a conventional manner, with different executives responsible for investing across various assets and geographies, such as real estate or China . If the reorganisation proceeds, it would enable key executives to better focus their attention on improving the firm's performance and efficiency, the people said. Advertisement Temasek didn't immediately respond to a request for comment.
