Property prices begin to fall

Lower prices more prevalent in the New Territories.

Centaline Property Agency said sellers in the New Territories have been cutting prices by about 5%. That’s because of the downward pressure on prices caused by the construction of some 5,000 new dwelling units in 2012.

Of the 13,600 new units due for completion this year, 83% of this total are located in the New Territories, further deepening pressure on secondary-market sellers. Home buyers seeking price relief outside the New Territories are having a harder time of it, however, Centaline said.

Chief Executive Leung Chun-ying has talked extensively about the need to address the city’s affordability problem through a mix of demand-oriented measures and increased supply. The government expects 15,800 units to be completed next year, a 17% increase over this year’s total.