No sign of end to plunge in sales

Property transactions in the secondary market are continuing to decline as prospective buyers, fearing a possible rise in interest rates, delay purchases, estate agents say.

Centaline Property Agency managing director Shih Wing-ching said the number of secondary market transactions handled by the company had fallen 10 per cent to about 400 deals in the first two weeks of June from the same period in May.

He attributed the fall to home buyers' confidence being shattered further by the prospect of a rate rise and a nose-dive in the Hang Seng Index.

'I am also surprised by the landslide in property prices last week, ' Mr Shih said.

The company had closed a transaction on a unit in Taikoo Shing at $3,900 per square foot while a unit at Sceneway Garden above Lam Tin MTR Station had been sold for $3,600 per sq ft, he said.

However, he believed home prices would rebound after such a drastic fall.

Agents said buyers also had been disheartened by news of further price cuts by developers for new property sales.