Midland Holdings reports first-half loss as property measures bite

Midland Holdings, one of the city's leading property agents, has sunk into the red with a six-month loss of HK$88.73 million, and the company warned the worst is yet to come. The firm made a profit of HK$147.3 million in the first half of 2012.

The loss came as property transactions in Hong Kong in the first half dropped to the lowest level in a decade.

There were 39,077 property transactions lodged with the government registry in the first half as a series of housing policy measures and the continued tightening of mortgage requirements weighed on the real estate industry.

It is the lowest since 35,200 deals were recorded in the first half of 2003.

Despite healthy economic conditions, the demandsuppressing policies launched by the government and the upward pressure on costs posed serious challenges to business operations, Midland said in its result announcement.

Chairman Freddie Wong Kin-yip said the market had not yet seen the worst.

"It is just the beginning," Wong said after the result announcement press conference. "Prices will fall further when interest rates rise and liquidity in the market tightens."