HONG KONG - Hong Kong private home prices in July eased 1.12 per cent from June, the third monthly fall in a row, as home buyer sentiment was deterred by rising interest rates and a weak economic outlook.

The drop in home prices in July in the financial hub, one of the most expensive markets in the world, followed a revised 1.05 per cent fall in June, official data showed on Tuesday.

Home prices have retreated again since May after a short-lived bounce early in 2023 from a 15 per cent decline in 2022.

Major developer Henderson Land said in its earnings statement last week that the property market would be “quite depressed” in the second half if the government does not propose any new measures, because the downward trend for housing prices in the secondary market had “become obvious”.

The industry has been urging the government to relax more property market curbs to stimulate transactions. But the the government has repeatedly said it was not an appropriate time for more adjustments with prices still relatively high amid a housing shortage.

A new home launch in July by another major developer, CK Asset, owned by tycoon Li Ka Shing, at the lowest prices in seven years shocked the market and could intensify a price war in the financial hub, realtors said.

Transaction volume in August was expected to fall for a fifth month to an eight-month low, according to property agency Centaline. REUTERS