Bloomberg reports on staling housing markets in Asia that have been hit by government efforts to prevent the real estate bubbles that Western economies have seen burst over the last few years. Property prices in Hong Kong have decreased by 6 per cent since June and Barclays analysts estimate a drop of 25 per cent could be seen by 2013. Would be Hong Kong homebuyers have to find large deposits, as well as stumping up extra transaction taxes and facing rising interest rates. The WSJ reports that banks in Hong Kong have also been seeing a decline in yuan deposits as increasing amounts of the currency is used to pay mainland suppliers. The outflow of deposits, as well as tighter lending conditions in China have motivated banks in Hong Kong to raise additional yuan funds in order to move further into the market. Flight to the to US dollar has also led to decreases in deposits.
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