HONG KONG, Oct 29 Reuters Hong Kong39;s home prices dropped for the fifth consecutive month in September, official data showed on Tuesday, in a struggling property market that realtors expect to bottom out soon after an interest rate cut and the government39;s easing policies.

WHY IT39;S IMPORTANT

Housing demand in Hong Kong, one of the world39;s most unaffordable cities, has lost steam since May after a shortlived bounce when all property purchase curbs were lifted in February. Realtors said much of the pentup demand has been sated, while property developers launched new flats at steep discounts to boost sales.

The government this month also relaxed the down payment ratio to 30 for all properties, and allowed purchases of luxury homes worth more than HK50 million 6.43 million to be included in its investment immigration scheme.

BY THE NUMBERS

Private home prices fell 1.7 in September from the month before.

Prices have dropped 7.5 since December.

They have tumbled 27.7 from their 2021 peak, staying at their lowest level since August 2016, hurt by higher mortgage rates, an outflow of professionals and a weak market outlook.

MARKET COMMENTS

We may see residential prices bottoming out in the near term after five months of decline, CBRE Hong Kong Executive Director Eddie Kwok said.

Knight Frank Senior Director Martin Wong expects prices to drop around 8 for the full year, as interest rates start to fall.

UBS expects home prices may rise up to 5 in 2025, driven by…