Hong Kong home sales sink but worst still to come
Effect of government's doubling in stamp duties yet to be reflected in transaction figures, analyst says, but impact could surface this month
Home sales dropped nearly 30 per cent last month, with analysts predicting the worst is yet to come.
Total property transactions, which include residential and non-residential properties such as offices and shops, fell 29.1 per cent month on month to 6,841, the lowest in 13 months. Those transactions were valued at HK$44.4 billion, 24.9 per cent short of February's total and 40.7 per cent below the March figure last year.
Centaline Property Agency research head Wong Leung-sing said he expected total property transactions to fall below 5,000 units this month as the fallout from the new curbs was felt.
"The decline in transactions [for March] reflects the slow sales during the Lunar New Year period from February 10. It does not reflect the impact of the doubling of stamp duties announced at the end of February," Wong said.
On February 22, the government doubled stamp duties on properties worth at least HK$2 million, and last month some big banks in the city raised their mortgage rates.
HSBC, Standard Chartered, Hang Seng Bank, Bank of East Asia and Bank of China (Hong Kong) raised mortgage rates to between 2.4 per cent and 3.5 per cent. Banks such as Dah Sing, Wing Lung and China Construction Bank have, however, held their rates at 2.15 per cent.