New home prices in Hong Kong have tumbled by up to 30 percent from their peak before the government slapped restrictions on the market in 2012, Ming Pao Daily reported Monday, citing a government source.
The figure compares with a decline of less than 1 percent in the Centa City-Leading Index, a weekly reference guide based on contract prices in Centaline Property Agency Ltd., and a similar fall in Land Registry data.
The discrepancy reflects changes in the secondary market and cash rebates and other incentives offered to homebuyers rather than outright cuts in nominal selling prices, the report said.
Developers are likely to continue their low-price strategy for new property projects to boost sales.
Meanwhile, construction began on 19 private residential projects involving 8,000 flats in the first quarter, the report said.
The number of new flats has hit a record high since 2010, nearly 1.3 times more than the 3,500 units completed in the fourth quarter of 2013, Transport and Housing Bureau data shows.
Midland Surveyors director Alvin Lam was quoted as saying that property developers are looking to cash out by stepping up construction of new homes.
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