Hong kong property sales and prices predicted to fall

Sales volume is expected to drop by the end of 2013 to as low as 52,000, compared to 81,333 in 2012, explains Thomas Lam, Director and Head of Research & Consultancy of Greater China - a level even lower than the SARS-affected 2003. Sales are set to drop further to 45,000-50,000 next year, he adds, thanks to continuing cooling measures.

"The 2014 sales market will continue to be dominated by primary sales, with beneficiary packages offered offsetting some impact of the cooling measures," Mr. Lam adds, "while secondary sales will be further suppressed with primary prices being close to or even lower then secondary prices in the locality and lowering valuation of second-hand units."

Indeed, the market has turned and entered a downtrend. Residential prices will be heading south in the coming few years, but significant corrections are not expected amid a low mortgage rate environment. As a result, Hong Kong prices are expected to drop 10-14 per cent in 2014.