Real estate veterans expect Hong Kong’s property prices to drop by 3-5 percent in the short term amid a slump in the stock market, the Hong Kong Economic Journal reported Tuesday.
About 20-30 percent of home owners, in general, are willing to cut their asking bids by 2-3 percent in an attempt to sell their units, Sammy Po Siu-ming, head of Midland Realty’s residential department, was quoted as saying.
Such units are mainly located in lower-end developments, Po said.
Vincent Chan Kwan-hing, Qfang.com’s managing director for Hong Kong, said any decrease in home prices in the secondary market will not be huge, given the strong demand for flats.
Following a slew of property curbs imposed by the government, speculative activity is almost all gone, said Louis Chan Wing-kit, managing director for residential property at Centaline Property Agency Ltd.
Chan said a sharp decline in property values is therefore unlikely.
A flat on a high floor in the Mid-Levels was recently sold for HK$66 million (US$8.5 million) after the owner revised his asking bid downward by 3 percent, sources told the HKEJ.
Another flat on a high floor, in City One Shatin, a popular mass market development, was sold after the owner lowered his asking price by 2.1 percent, the sources said.
Translation by Vey Wong
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