THE shortage of mortgage finance in the market has impacted on flat values at Parkway Court in Mid-Levels.
Since August, the price per square foot at the five-year-old development has dropped from $4,282 to $4,133, recorded in November.
''This is symptomatic of the reduction of money available for lending,'' said Brooke Hillier Parker partner David Faulkner. ''Initially, the slowdown in sales hit the lower end of the market but now we are seeing the effect in the middle and upper marketsectors.'' Despite the drop, prices at Parkway have increased significantly from a year ago when the average price per sq ft was $3,480.
Selling prices for two-and three-bedroom flats in Parkway Court start at about $5 million.
While the number of flats being sold and sale prices have dropped, residential rents are continuing to rise.
Mr Faulkner said this had led to an increase in rent yields, making the residential market more attractive to investors.
