FLAT owners are bracing themselves for more price drops over the next few months.
Sentiment in the depressed property market was dealt a further blow last week when a residential site in Yuen Long was withdrawn from a government land auction.
It was the first time since 1983 that the Government had to remove a residential lot from auction.
Residential prices in Hong Kong have fallen steadily in the eight months since April, when it became apparent average income earners could no longer afford to buy a modest flat in the territory.
Buyers and sellers have played a waiting game since the Government introduced its package of measures to slow price rises.
Fewer flat sales have also meant bank profits for this year will be considerably lower than last year, and should be close to the profit margins reached in 1992.
The latest survey by property company Brooke Hillier Parker (BHP) shows asking prices in Chai Wan and Quarry Bay dropped again last month.
