Property prices in Hong Kong could collapse by 25%

Sept. 28, 2014 - PRLog -- Such data obtained in the survey company Sanford C Bernstein. "Sales of new apartments will remain under intense pressure, and developers will bet on cheaper and smaller flat area, to increase sales," - says one of the company's analysts.

According to estimates of the Swiss bank UBS, the decline in residential property prices in Hong Kong this year may reach 10%, while rental rates could rise by 5-10%.

In recent weeks in Hong Kong has been a sharp surge in demand in the market of real estate. Developers rushed to implement projects. Some companies have even raised the fees for real estate agents from 2.5% to 3.5%, only to support the sale of vacant housing.

In some areas, there were suggestions that include parking space for half the price when buying an apartment. Some owners have reduced the prices of apartments by 10% and are willing to sell the living space below the average market price.

March 1, the State Council of China announced a new batch of restrictions aimed at curbing property prices by curbing speculative demand. These measures include strict restrictions on the purchase of homes by people who are not residents of the city, a 20% tax on capital, the mandatory 70% down payments, as well as the rate of 30% for the second mortgage.

The previous round of restrictions on the housing sector, implemented a little less than two years ago, at least for a while and damped market sentiment, but could not hold back the growth of real estate prices.

More financial and banking news from Hong Kong are available at http://hk-banks.com