HONG KONG, (Reuters) – The prices of private homes in Hong Kong, which are among the most costly in the world for their size, fell for the second consecutive October according to official data. This is a significant decrease from the record-breaking high, as potential buyers became more cautious prior to a policy meeting.

In October prices fell by 0.9% compared with September’s revised fall of 0.03%.

The home price had been rising for 8 months, but it was only then that they reached historical highs. This level was last recorded in May 2019, just before the outbreak of the pandemic in Japan and mass anti-government protests in other parts of the country.

Agents said that buyers became more careful before October’s policy address, fearing that a harsh housing policy would be implemented to reduce sky-high property values.

However, after very little was said, buyers began to become active once again. November’s transaction volume increased by 40%.

Carrie Lam, leader of the campaign to address the city’s housing crisis announced last month that the long-term goal of building a Northern Metropolis along the border to Shenzhen’s tech hub on the mainland was at the center of the plans. It covers 300 kilometres.

Derek Chan (head of research, realtor Ricacorp) stated, “After all, supply remains limited in Hong Kong. The economic and employment rebound has helped support the property market.”

According to him, November’s home prices were expected to be flat or show a slight gain. The gain could extend into December if China’s border reopens.

Some investors believe that the delayed opening of the border could boost property and economic demand in Hong Kong. According to local media, the Hong Kong government is not yet able to give a time frame. However, they have reported that the opening could occur in December.