New | Hong Kong’s housing market may not follow weakness in Singapore, says Wing Tai Properties

Singapore saw disappointing sales and falling prices of private homes due to government-introduced cooling measures, yet developer Wing Tai Properties believes Hong Kong’s housing market may not necessarily follow the path of the Southeast Asian country.

Singapore implemented higher stamp duties, tougher mortgage conditions and other property cooling measures since 2009 which depressed sales in both the primary and secondary markets, while prices fell for the eighth straight quarter to 4-1/2-year lows and are now down 8 per cent from their last peak in the third quarter of 2013.

Although Hong Kong has introduced similar measures, Edmund Cheng , deputy chairman of the Singaporean developer, said that the city’s market may not follow Singapore’s.

“The two cities are so similar, but even then - every place is different,” said Cheng, adding that Singapore’s public housing situation creates a different supply and demand dynamic in homes compared to Hong Kong.

“Even if they want to go (for) what Singapore has, it will not be totally replicated.”

Hong Kong ‘s property sales last month slumped to a 19-month low , with sales down 43.63 per cent year on year, compared with September’s drop of 31.6 per cent. Home prices have been softening but are still up 6.6 per cent from the beginning of the year.

Cheng also believes that the slowdown in Singapore market will not affect the luxury sector.