CCL dropped 4.4% since March

Luxury property prices continue to ease.

According to UBS, property prices, in particular luxury properties, have eased somewhat, driven in part by falling transactions after the last round of government’s prudential measures in February 13.

The CCL—property price index compiled by Centaline property agency—has fallen 4.4% since March 13.

Here’s more from UBS:

Hong Kong asset prices typically benefit when the Federal Reserve eases monetary policy aggressively, because Hong Kong’s linked exchange rate with the USD means that it imports 100% of the US Fed’s monetary policy. 

The government introduced some tough property cooling measures on 22 February last year, as property prices re-accelerate and capital inflows resume.

High household debt ratio, plus the extreme level of property prices, suggests that the government will be on guard to mitigate the downside risks.