Government cooling measures have started to have an effect on Hong Kong's property market,
with a leading developer claiming that the sector is faltering. This is despite housing sites fetching record-breaking prices and individual residential developments registering transactions at an all-time high.
Colliers International explained that a slowdown in residential sales activity over the past quarter has revealed a growing uncertainty in the market.
Since the final three months of 2010, several measures, such as bank tightening measures including lowering of loan-to-value ratio and the government's announcement of a stamp duty on residential sales transactions, have been in place to simmer down the housing boom.
Ricky Poon, the firm's executive director of residential sales, said that one of the driving forces for the robust luxury residential price growth can be attributed to the strong demand from wealthy mainland Chinese buyers.
"Besides bank tightening and the government's cooling measures
, a reverse or slow down in the hot money from the Mainland to Hong Kong may also affect the residential price growth. The question now is when this will happen if it does happen," he said.
- Thursday 02 June 2011