PUBLISHED : Wednesday, 07 December, 2011, 12:00am
UPDATED : Wednesday, 07 December, 2011, 12:00am


Market in downhill cycle, Centaline founder says

Centaline Property Agency co-founder Denny Wong Man-yin told bankers recently that four key factors supporting the local property market - which include low land supply, low interest rates, an influx of hot money and strong inflation expectations - were fading, putting Hong Kong in a downward cycle with the inflection point already seen. The managing director of Easy Property said at a Deutsche Bank luncheon that the sales volume would rebound as price declines accelerated. He said stocks were a better investment than property in the current market. Paggie Leung

Prices to drop up to 15pc next year: Samsung

Samsung Securities Asia expects property prices will drop 10 per cent to 15 per cent next year but they are unlikely to see any sharp correction. There are a number of factors supporting the market, according to the brokerage house. Real mortgage rates are still far below average rental yields - unlike the situation in the late 1990s - while a lower loan to value ratio helps maintain positive monthly cash flow. Samsung also noted the strong holding power of homeowners who committed to mortgage loans between the second quarter of 2009 and the first quarter of this year, with the lowest rate at Hibor plus 0.65 per cent. Peggy Sito