Liquidity crunch forces mainlanders to cash out of Hong Kong luxury homes



Cash-strapped mainlanders are scrambling to sell their luxury homes in Hong Kong, and some are cutting prices by up to a fifth for a quick sale, as a liquidity crunch looms on the mainland.


Wealthy Chinese were blamed for pushing up property prices in the city, where they accounted for 43 per cent of new luxury home sales in the third quarter of 2012, before an increase in stamp duty on non-resident buyers was announced.


The rush to sell coincides with a forecast 10 per cent drop in property prices this year as the increase in duty and rising borrowing costs cool demand.


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Posted in Research.