Midland predicts property deal dive
Midland Realty (Holdings) expects property transactions to plunge to 8,000 this month from about 21,000 last month due to an abrupt market downturn.
Sales director Victor Cheung Kam-shing said last month's transactions would be worth about $100 billion.
The number of deals would be between 8,000 and 9,000 this month after Government measures to curb speculation slowed the market, he said after the company's annual general meeting yesterday.
Chairman Freddie Wong Kin-yip said the company's transactions volume had dropped 70 per cent to 1,200 deals this month.
However, buying interest had picked up in the past two weeks because prices had dropped about 10 per cent, he said.
Mr Cheung said the market correction would last for one to two months because of the shortage of flats.
In addition, most developers would maintain their price levels for uncompleted flats.
Property prices would not fall sharply as in 1994, Mr Cheung said.
He also said it would be difficult to carry out Secretary for Housing Dominic Wong Shing-wah's attempt to clamp down on property transactions involving confirmors - a type of speculator who purchases the right to buy a property, before selling that right to a third party.
'It is hard to verify the sellers' identity,' he said.
Mr Cheung said Midland's broking business would not be affected by the Government ban on confirmor transactions.
The company had issued guidelines to its staff to tell clients the risk of buying properties from confirmors.
Last month, about 6 per cent of the transactions handled by the company involved confirmors, up from 3 per cent in February, he said.
Mr Wong said the company would open 22 branches in the next few months, bringing the number of branches to 234.
Midland planned to buy more shops in order to cut rental expenses, he said. The company owns 35 branches.
