Property is a big economic mover in Hong Kong, but prices are astronomical
For people who want to buy a flat in Hong Kong, the slump in property prices is a good thing.
But has it bottomed out yet?
January property sales was just 3,123, the lowest January figure since 1991. It was a 41-percent decline month-on-month, and 62-percent dive year-on-year, and property agents are not expecting things to get better anytime soon.
Analysts say some factors include the withdrawals of government land sales, interest rate hikes, and the return of negative equity owners.
There were only 2,025 residential properties sold, down 50 percent month-on-month, and 68 percent year-on-year, according to the Land Registry.
As a result, developers are slowing the launches of their latest flat offerings, and with Chinese New Year coming up, there won't be much movement in the next week or so.
There is talk that some developers may cut prices to below the market price of second-hand homes to stimulate sales.
The property industry makes it sound like doom and gloom, but perhaps prices are too inflated? Potential buyers are poised to strike as soon as they think the market has bottomed out.
Everyone's looking for a good deal, and if the price is right...