Property Stocks Plunged After Cooling Measures
The stock prices of local property developers plunged after the government launched the cooling measures in the property market. The stock price of Sun Hung Kai (016) fell 9.88% to HK$104, making it the biggest fall among blue chips yesterday and suffering a paper loss of HK$33 billion. New World Development (017) slumped over 9%, while Cheung Kong Property (1113) and Sino Land (083) dropped 8.8% and almost 8% respectively. The top 10 developers have lost market value of HK$91.6 billion in total.
Buyers Remain Hesitant After Curbs Hit
After the government raised the double stamp duty to 15%, both first hand and second hand markets cooled down while many investors remains hesitant. Louis Chan Wing-kit, Centaline Property Agency’s Asia-Pacific Residential Chief Executive said they still recorded some transactions after the tightening of cooling measures, yet it has dampen the incentive of investors to purchase properties. Though the luxury property market will be supported by rich buyers, buyers for small or middle-sized units would remain hesitant.
New Projects To Rearrange Sale
Several developers stopped and will rearrange the sale of new projects, including Sun Hung Kai’s Ultima in Ho Man Tin. Meanwhile, New World Development’s The Woodsville in Yuen Long has announced new arrangement yesterday.
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