According to real estate experts, taking into account the five year lowest dip in property transactions in 2011, the real estate market in Hong Kong is set to drop further in the year 2012.

For reasons of numerous measures by the Hong Kong government in order to control the increase in property rates, Hong kong property analysts think that the market is tipped to fall more in 2012. Way back In 2011, property transactions went down to a five-year low.

Efforts being made to control Hong Kong property rates:

Property rates are escalating in Hong Kong and every feasible measure is being use to curb it.  Leaders are looking at every possible angle in order to control the rates. Rage among the local population is increasing. They can no longer afford to own a house sin as the cost to acquire a house in Hong Kong is near to impossible .

Last year new taxes were imposed and the government increased  stamp duty  just  to discourage wealthy buyers from Mainland China from investing heavily in HK. Several land auctions were also done to increase the supply of land for construction of new housing units. All this was made in an effort to bring one of the world’s most expensive housing markets under control.

Dropping Transactions in Hong Kong:

According to a real estate agency in Hong Kong, in 2011 a  total of  108,814 properties are sold or bought which was a 33% dip from last year (162,739 transactions). This was believed to be the lowest property transaction number since 2006 where a total 99,087 deals were done.

It cannot be denied  that the measures taken by the government is  to control the market but eventually it has started affecting it in an adverse manner. The global economic outlook has become weak and the rising mortgage rates have also its effect, resulting to the downfall of Hong Kong property market. A downturn is being expected in 2012 and if the global economy weakens more, the slowdown could get worse.

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