hong kong property market feeling the cold
News Posted On: 06 January 2012
Government measures to cool the Chinese and Hong Kong property markets may have worked a little too well in the latter according to the latest data.
After the government raised stamp duty, imposed new taxes and banned second home ownership last year prices finally started falling at the end of the year. However, according to data compiled by one of Hong Kong's largest real-estate agencies Centaline, the total 108,814 properties sold in 2011 was 33% lower than 2010 and lower than any year since 2006. So either the measures brought a massively rapid slowdown, or the market was already slowing anyway.
Maybe it's a little of both; official data released on Wednesday showed sales in December down 54% year on year at 4,301.
"The policies were meant to curb speculating activities but they are now hurting the market," said Wong Leung-sing, Centaline's research head, who also cited rising mortgage rates and weak global economic sentiment for the fall.
He said prices fell only about five percent on average from their peaks seen in June last year -- due to owners being reluctant to sell -- and he told AFP: "We foresee a downturn in terms of transactions in 2012."
Buggle Lau, chief analyst at property broker Midland Holdings, said prices were likely to see a correction this year, and the slowdown could turn worse if global economic sentiment weakened further.
"Prices are likely to remain flat overall, there will be a price adjustment -- about five to 10 percent correction," he told AFP.
View Chinese property for sale
Written by Les Calvert+
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