90% of large-scale housing estates in Hong Kong experience decrease in valuation

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Shatin Centre

11th December 2023 – (Hong Kong) Valuation for approximately 90% of 20 large-scale second-hand housing estates has experienced a decline over the past month. Among them, Shatin Centre took the hardest hit with a decrease of approximately 7%, while Taikoo Shing has suffered 8 consecutive months of decline, resulting in an overall drop of over 20%.

According to data compiled from individual major banks, out of the aforementioned large-scale second-hand properties, as many as 18 have seen a decrease in valuation, with 15 of them experiencing a collective decline of about 75%. This figure marks a new low since statistics have been recorded since April 2019. One such example is the Sha Tin Centre Kai Ning Building, located in Shatin Centre, which consists of lower-level units with an approximate usable area of 301 square feet. Its online valuation has plummeted from around HK$4.45 million at the beginning of last month to a record low of around HK$4.14 million, representing a significant decrease of approximately HK$310,000.

Following closely behind is Mei Foo Sun Chuen in Lai Chi Kok, which has consistently recorded significant price drops in recent months, making it the hardest-hit urban housing estate in terms of valuation decline. The high-rise units in Phase 3 at 68 Broadway Street, with a usable area of approximately 863 square feet, have seen a notable decrease of around HKD 530,000, resulting in a decline of approximately 5.5% compared to the previous month. This marks the fifth consecutive month of decline, reaching a record low for the second consecutive month.

Another property experiencing a monthly decline of over 5% is Residence Oasis in Tseung Kwan O, with its five mid-level units and a usable area of approximately 507 square feet. The valuation for this property was reported to be around HKD$6.94 million at the beginning of this month, marking the lowest figure in over four and a half years. This represents a decrease of approximately HK$380,000 or 5.2% compared to the previous month.

Whampoa Garden in Hung Hom and Caribbean Coast in Tung Chung have also seen unit valuations decrease by approximately 4.3% and 3.9% respectively on a monthly basis, while other housing estates have experienced relatively milder declines. Shun On Mansion, a low-level unit in Taikoo Shing, has seen a monthly decline of approximately 2%, with its valuation dropping to around HK$7.7 million.

Although property prices continue to experience declines, there is some optimism in the market due to government measures aimed at curbing speculation. The presence of active buyers in the mid-priced residential segment, where properties are priced around HK$10 million, indicates some resilience. With interest rates stabilising and the economy gradually recovering, the property market is expected to perform better next year. However, the first half of the year is still expected to be volatile, with a gradual recovery anticipated in the second half.