Hong Kong's Property Market Slides down
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Data shows housing prices in Hong Kong slumped 5 percent in the second half of 2015. [File Photo: house365.com]

Hong Kong's property market has recorded a steep drop after a decade of steady increases.

Statistics show that the city's housing prices began to fall in the third quarter of 2015, and slumped five percent in the second half of last year.

Chen Yungchieh, President of Centaline Property Asia Pacific, says the downward trend is continuing into 2016.

"With the U.S. raising its interest rates, and the unsatisfactory economic data lately, housing prices have dropped even harder. People selling their homes are more determined to cut prices. We expect prices will hit bottom around Spring Festival and overall there will be a 10 to 15 percent drop in housing prices."

Concerns that a property bubble has burst will likely shake Hong Kong's economy.

However, Chen says he doesn't believe prices will reach absurdly low levels, as government-imposed cooling measures have effectively curbed the bubble's size.

"In 2013 and 2014, housing prices, especially those of small- and medium-sized ones priced below 5 million HK dollars, went up by 80 or 100 percent. I think a 15-20 percent drop is healthy and reasonable."

In contrast to a general sluggish housing market, luxury property transactions are booming.

Analysts say the scarcity of luxury property in the southern Chinese city makes that sector of the housing market more immune to the downward trend.

Author： 　　　Source：CRI　　　 Editor：Yang Fan