Home price cab initiatives in China cities reducing demand for home buyers from Hong Kong
According to reports, the number of citizens from Hong Kong who are buying property in China has fallen for the first six months of 2011. This came in the wake of some central government measures which have greatly affected such investments. Statistics by Land Power, a renowned property broker showed that Hong Kong residents have bought between 7,300 to 8,300 residential units in China from January to June 2011 with the amount totaling to some 8 billion yuan.This means that for the same period in 2010, it is 7% lower in terms of volume while in terms of total contract value, it is down by 5%. Hong Kong property buyers are still very much interested in the Shenzhen and Guangzhou provinces which actually make up 50% of the total residential units while other places like Shanghai and the Pearl River Delta too are common favourites. The reason for the drop, according to the company si due to the gloomy property market while property prices in the cities of Shanghai, Beijing, Guangzhou and Shenzhen too have dropped. This situation is not helped by recent initiatives that include a price cap for homes in certain large cities which affected the market greatly.