Property sales plunge by 36% in April

Comes on heels of 28% drop in March.

Tough government measures to cool off the overheated property market continued to take its toll on property transactions.The Lands Registry recorded 4,387 sale and purchase agreements for all building units in April, down 36% from March and 59% year-on-year.

The total value for these transactions came to $31.9 billion, down 28% on March and 48% year-on-year. There were 3,427 agreements for residential units with a total consideration of $18.7 billion.

Spiraling property prices has been forcing Hong Kong to implement tougher and tougher cooling measures and now it appears they are finally taking hold.

Analysts said the measures, which experts say have effectively screened out buyers from mainland China, is now boosting the cost of rents as more people shift to the rental market. The new policies, however, are expected to stabilize prices and the government seems bent on retaining them.

Sentiment in Hong Kong’s residential property market remains sluggish following a series of real estate tightening measures imposed by the government.