Mass-market home sales in Hong Kong may slip in the second half of this year, due to a series of property measures implemented by the government, said Jones Lang LaSalle (JLL).
Joseph Tsang, Managing Director at JLL, also said that mass-market home prices will remain steady due to a lack of supply.
The government implemented more property measures last month, the fourth time since October 2009, raising down payments for some local and foreign home buyers to curb rising residential prices. Meanwhile, the number of residential transactions in Hong Kong dropped for the sixth consecutive month in June.
“The government curbs, especially higher down payments, will only have an impact on those who need bigger apartments in the mass market,” Tsang said.
Home prices throughout the city have climbed more than 70 percent since the start of 2009, due to the surge of buyers from mainland China and record low mortgage rates.
Prices of luxury homes may rise by a minimum of five percent throughout H2, due to dwindling supply, he said.
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