Banks are raising interest rates and investors are offering gifts of cars and plasma TVs to hasten sales
Speculators are moving quickly to dump large holdings of flats as rising interest rates look likely to cause a potential sea change in the investing environment.
The market is starting to see a correction in projects and districts where there has been substantial speculative buying, with asking prices falling by up to 10 per cent.
Investors are seeking to get rid of units typically pre-sold 'off the plan' with long completion dates so as to minimise their initial capital commitment.
Banks have raised their interest rates in response to changing money market conditions, resulting in the best lending rate going up by 0.5 per cent in two weeks.
HSBC and Hang Seng Bank are expected to follow their smaller rivals, which raised their prime lending rate by 0.25 per cent to 5.5 per cent on Monday.
