Worried homebuyers stay on sidelines

The euro-zone crisis, volatile markets and slowing mainland growth are taking a toll on the property market in Hong Kong.

As the number and value of property transactions slump to four-month lows, would-be homebuyers are becoming increasingly worried prices are due for a correction.

The Land Registry said yesterday there were 8,389 registered sale-and-purchase agreements for all properties, including apartments, shops and car parking spots, last month, down 27 per cent from May.

The value of the transactions fell 16.7 per cent month-on-month to HK$54.5 billion. Value and number were the lowest since February, when 5,425 units were sold for a total of HK$26.97 billion.

'The figures clearly show that the European debt crisis cast a pall in May over the market, which is hamstrung by growing uncertainty,' said Wong Leung-sing, an associate research director at Centaline Property Agency. 'Global stock markets have been volatile and have dragged down property transactions.'

The market also lost momentum because of growing fears that the new government led by Chief Executive Leung Chun-ying would want to introduce policies that would undermine housing prices to make home ownership more affordable.