Transactions in the residential market remained stagnant as last week's land auction results failed to stimulate buying, say estate agents.
They said sentiment and activity remained flat with sellers firmer in asking prices and buyers hesitating to enter the market.
Centaline Property Agency managing director Shih Wing-ching said transactions continued to drop since the Government auction last Wednesday.
There was downward pressure on prices as the market took a breather and was testing the level of support, he said.
Mr Shih estimated that home prices had corrected downwards about 5 per cent from the levels achieved in April and May and said it was possible there would be a further fall of 3 to 5 per cent in the short term.
Estate agents said home prices had rebounded by 15 to 20 per cent since hitting the bottom last October.
