‘No Tears Left’: HK estate agents resort to desperate ads
HONG KONG (Bloomberg): Hong Kong real estate agents are using increasingly tongue-in-cheek advertising slogans to entice potential buyers during the city’s worst real estate crisis in years.
‘Born at the wrong time’, ‘No tears left to cry’, ‘The cut is deep, the love is real’ – these are just some of the slogans used on property listings, highlighting the desperation of agents and On one level, it worked: social media sites are now inundated with these exaggerated descriptions. But sellers are still struggling to offload properties.
The rise in interest rates weighs on a real estate market already battered by the exodus of the population and the brakes of the Covid. Hong Kong’s one-month rate, known as Hibor, hit its highest level since 2008 due to the city’s currency peg to the greenback. High borrowing costs coupled with an economic contraction made potential buyers cautious.
The number of unsold new homes in Hong Kong hit its highest level in more than 15 years in the third quarter. Even powerful city developers may need to offer discounts to sell vacant units, according to Bloomberg Intelligence.
Ada Chan, a 42-year-old human resources manager, recently had to bear a loss of 5.4 million Hong Kong dollars ($690,000) to sell her three-bedroom apartment near the University of Hong Kong for 13 HK$.3 million. She said it was her biggest loss on real estate investments. Even with multiple price cuts, it took Chan more than a year and a half to find a buyer for the 500 square foot (46 square meter) apartment.
Second-hand home prices are down 11% since the start of the year. Goldman Sachs Group Inc. expects values to fall 30% through 2023 from last year’s levels.
“I’m not optimistic about Hong Kong’s long-term development,” Chan said. “It’s no longer a place where investing in real estate can bring you high returns.”