Expensive houses for sale hit peak in Hong Kong

Expensive houses for sale hit peak in Hong Kong in the third
quarter of 2011, according to the latest reports.

The Residential Index, published by Jones Lang LaSalle,
showed that Hong Kong’s average capital value fell by 0.2 per cent. The drop
followed an increase of 1.6 per cent in the second quarter of the year and marks the first time that values have fallen since the beginning of 2009.

Sales figures fell too, with fewer transactions taking place
between July and September as economy uncertainty and government decisions
affected the market. Growth has been slowing since 2009, experts note, when a
quarterly growth of 7.4 per cent was recorded.

Jakarta and Mumbai saw rising capital values during the quarter,
according to Property Wire, while Hong Kong’s house prices dropped by 0.6 per
cent. On an annual level, Hong Kong’s prime real estate had a strong increase of 23 per cent, remaining stable for the fifth quarter in a row, but
the slight decline suggests that luxury real estate has now reached its peak.