Hong Kong's property transactions cool by almost 40% - Yet, Prices Remain High?
November 29, 2011 - Hong Kong
Hong Kong's property sales transactions have dropped approximately 40% from 7,500 per month in 2010 to 4,500 per month in 2011 for the months of September, October, November.
The big question everyone has: If fewer people are buying why have prices remained at historically high levels?... Is a major market correction coming soon to Hong Kong property market?
The buzz among real estate agencies is a cautionary tale and they have seen the market shift aggressively to landlords abandoning their aspirations of selling their property t and putting their flats back on the rental market (at a discount). This has spurred more rental supply in the market and a significant drop in average rental prices from their recent historical peaks. This in turn has put more pressure on rental flat yields for landlords and downward pressure on the property valuations which cannot be justified by rental market. This has made those formally seeking to buy switch their mindset to renting.
Many Hong Kong property investors are waiting on the sidelines for an anticipated drop in the market and no savvy property investor wants to be the one who purchased their flat at the 'highest price ever sold' right before an anticipated market correction.
We will continue to watch the market closely and update our readers with breaking news and alerts.
blog, property, real estate, Investors, transaction