The average price of new housing in Hong Kong fell 25% in 2019 to its minimum level of the last four years due to protests in the city, local press revealed today.
The manifestations that have been happening in the British ex-war for seven months deterred investors from acquiring new properties, and the average price of housing in 2019 stood at 10.87 million Hong Kong dollars (1.4 million dollars or 1.3 million euros) after falling into 3.72 million Hong Kong dollars (478,000 dollars, 430,000 euros).
These prices are 25.5% lower than the maximum recorded in 2018, of 14.59 million Hong Kong dollars (1.9 million dollars or 1.7 million euros), according to the South China Morning Post, which quotes data from the real estate agency Ricacorp Properties.
Experts from the real estate sector predict that the price of housing in Hong Kong will fall again in a generalized way in 2020. According to a survey published by the mentioned newspaper last December, prices will fall by 15% this year.
Housing in the financial city has reached exorbitant prices in recent years to make Hong Kong the most expensive city to acquire a real estate, and the difficulty of accessing a home is one of the reasons for social unrest in the city.
The months of protests have put Hong Kong's economy in recession for the first time in a decade, after contracting 2.9% in the third quarter, affected by the drop in imports and exports, of retail sales and by the decreasing figures of tourism.
The real estate sector is one of the economic engines of the British excolonia, and the effect of the protests - especially after the escalation of the fighting in August - is notorious: the sub-index in which the main companies of this sector are included in the Hong Kong Stock Exchange fell 12.6% between its peak of 2019, in April, until the end of the year.