30.07.2008 - Hong Kong home sales may drop as share prices decline
From bloomberg.com: Hong Kong's apartment transactions may fall to a 10-month low in July, then drop further, on concerns that accelerating inflation and a slumping stock market may push prices down, analysts said. Transactions in 10 of Hong Kong's biggest housing complexes, used by many analysts as a benchmark, fell to 27 last week from 33 the previous week, Centaline Property Agency Ltd. said. Total home sales in the city may drop to 6,100 in July, the lowest number since September, from 7,167 in June, Centaline said. "This will probably continue for the whole of the third quarter,'' said Louis Chan, managing director of residential properties at Centaline. "We're looking at between a 3 and 5 percent correction in prices within the quarter.'' Home values have tracked Hong Kong's economy, peaking in the second quarter of 1997, then crashing in the Asian financial crisis, leaving many homes worth less then their mortgages for years. .... Full Article: Source
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