Since the withdrawal of the cooling measures, the first-hand and second-hand property transaction volume surged immediately, but the transaction prices did not rise in parallel. One month later, the first-hand property transaction volume has been decreasing. Among of which the second batches of “Blue Coast” opened for sale, but the sales records were unsatisfactory in the first date of opening sale. The unwelcome sales results indicated that the spillover effects of the removal of cooling measures ended formally.
When Cheung Kong's “Blue Coast” completed its initial phase of second batches sales. KWG group and Logan Properties' 
super luxury properties “THE CORNICHE” in Li Nan Road of Ah Lai Chau, are now starting to be opened for sale in a low-key manner, and the price per square foot has been significantly reduced by 40% from last year's average price of HK$ 45,000 to 25,000, which are far beyond all the market predictions.
In addition, Phase IIB of “Onmantin”, a property project at Ho Man Tin Station jointly developed by Great Eagle and MTR, announced the first price list yesterday, involving 115 units, with a discounted average price of HK$19,988 per square foot, which is 20% to 25% lower than that of “IN ONE”, which is adjacent to this development developed by Chinachem and MTR. This sales price was a new eight-year low in the same district.
In early May, Cheung Kong may launch the sale of its new properties in Kai Tak. Cheung Kong owns two sites in this district, and its average accommodation value of per square foot is only about HK$11,000. If Cheung Kong reduces the opening price to HK$17,000, the property market in the same district will become a stalemate. If it is anticipated, the new or semi-new projects in the area will be forced to lower its selling prices by more than 30%.
At present, there are a numeral of real estate companies in Hong Kong that are heavily indebted, and four of them have debt ratios ranging from sixty per cent to two hundred and thirty percent, so there is a chance that its creditors may then apply to the court for a winding-up order to any one of these companies. That is no doubt that some of these local real estate firms will be in bankruptcy. In this period, many companies will attempt to sell their new flats at lower prices to avoid being insolvent. Under the latest development of the property market, the more they sell, the lower price it will be. Finally, the persistent falling property prices will become the new normal of the property market.
