Hong Kong's desperate homeowners slash prices by 20 per cent after unprecedented violence on National Day

By Lam Ka-sing kasing.lam@scmp.com / https://www.scmp.com/business/article/3031318/hong-kongs-desperate-homeowners-slash-prices-20-cent-after-unprecedented?utm_medium=partner&utm_campaign=contentexchange&utm_source=EdgeProp | October 8, 2019 5:24 AM SGT
There are signs of further softening in Hong Kong's property market. Homeowners are slashing prices by more than 20 per cent as buyers are reluctant to commit to big purchases and banks reduce the valuation of properties amid increasingly violent protests.
On Tuesday, an 18-year-old student was shot by police in Tsuen Wan. Tsang Chi-kin was one of many injured in the violence that spread across the city, as thousands took to the streets as part of demonstrations on National Day.
"[Homeowners] want to cash in and think holding cash would be safer," said Fanny Chiu, chief senior sales manager at Hong Kong Property (Services), adding that Tuesday's violence had "definitely" prompted sellers to slash prices.
"Potential buyers also said they wanted to see what would happen on October 1 to decide whether to buy or not," said Chiu, noting that the current sentiment is acutely bearish.
On Wednesday, the owner of a 378 sq ft flat at La Cite Noble in Tseung Kwan O lowered the asking price by 7.1 per cent, from HK$7 million (US$892,700) to HK$6.5 million.
A day earlier, a 919 sq ft flat at Lake Silver in protest-hit Ma On Shan sold for HK$13 million, after the price was slashed by HK$3.3 million, or 20.2 per cent.
Banks too have been cutting valuations of used homes. HSBC recently reduced the valuation of a 548 sq ft flat at Kingswood Villas in Tin Shui Wai by 7.7 per cent to HK$5.65 million.
Figures from the Rating and Valuation Department on Monday showed that Hong Kong's home prices declined 1.4 per cent in August, the fastest rate this year. The price index for lived-in homes slumped for a third successive month to 389.8.
Meanwhile, overall property transactions in Hong Kong, including new and used homes, parking spaces, offices and shops, fell 14 per cent month on month...