Hong Kong's shock home curbs seen cutting sales by up to 70%

Hong Kong

HONG Kong leaders' surprise move to cool the world's least affordable home market is set to spur an immediate plunge in prices and transactions as buyers and sellers hit the pause button.

Louis Chan, chief executive of the residential unit of Centaline Property Agency Ltd, sees transaction volumes plunging by 60 per cent to 70 per cent in the next three months, and now expects a 5 per cent to 8 per cent drop in prices, after previously projecting an increase in that range.

Ricacorp Properties Ltd's Willy Liu said transactions will drop 30 per cent to 40 per cent in the next two months and prices will fall 5 per cent.

Developers have already moved to suspend sales in the city, the South China Morning Post reported, with Sun Hung Kai Properties Ltd, Henderson Land Developmen…