Buyers of residential property in Hong Kong will now find properties selling for lower prices in several areas as per the latest reports. Property valuations are currently being reduced by several leading banks in Hong Kong. The housing market in the city is witnessing a sharp fall in prices and this trend could continue for quite some time to come according to experts.
Banks are lowering valuations since this will automatically translate into lower lending levels as per reports. Carrie Lam, the Hong Kong Chief Executive, is expected to unveil some measures soon which are aimed at tackling the housing crisis in Hong Kong, one of the costliest property markets worldwide. The rise in interest rates may lead to property prices coming down for several micro-markets in Hong Kong, thereby giving rise to newer opportunities for buyers and investors to snap up prime assets at lower prices in the current scenario.
Prices have previously increased steadily over the last 15 years. Lam is expected to emphasize on several measures aimed at increasing overall housing stock. These should include the conversion of industrial buildings into residential housing projects, building on farmlands and land reclamation from the sea according to reports. Some private lands may be converted into subsidized housing projects by the Government.
All of these steps and the subsequent supply increase will only lead to prices coming down to more reasonable levels and this may attract several buyers of residential real estate who found it hard to enter the market earlier. In fact, secondary home prices have come down by 1.6% in recent times as per reports. This is another segment which may witness increased buyer activity in the near future.
Hong Kong property market becomes more reasonable for buyers
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