Property prices in hong kong predicted to fall 10% in 2012

Residential property prices in Hong Kong, which rose the most globally in the past year, may need to fall as much as 10% in 2012 before buyers are lured back, according to international bank Standard Chartered.

‘Most people are on the sideline. They are watching. They are waiting. In order for activities to go up, prices may have to come down to drive a little bit more interest,' said Benjamin Hung, chief executive officer in Hong Kong.

Hong Kong property prices fell to a six month low in early November while the number of transactions the previous month fell to nearly a three year low, after the government increased minimum down payment requirements and increased land sales to curb a housing bubble.
 
However, some think prices may fall even further. According to Andrew Lawrence, head of property sector research at Barclays Capital Asia, they could drop as much as 30% by 2013.

Source: Property Wire