Hong Kong ( CNN ) -- The volume of Hong Kong property sales fell 60 % compared with last year in a sign that recent government policies are cooling one of the world 's most expensive real estate markets . The Hong Kong Lands Registry recorded about 4,400 sale and purchase agreements in April with a valuation of $ 4 billion -- a 48 % drop compared with the previous year . `` I 'm not surprised , '' says Buggle Lau , chief analyst for strategic development and research at Midland Realty . `` This is largely due to the measures implemented by the government . Residential property transactions -- primary and secondary -- dropped significantly . Non-residential transactions also dropped -- industrial spaces , car parks , commercial spaces . '' The slowdown in Hong Kong 's property sales was expected , echoes Simon Lo , executive director of research and advisory at Colliers International in Hong Kong . `` Most homeowners find they do n't have a very strong reason to sell , '' he says . `` They can wait for a couple of years '' because of the government 's property policies . On February 22 , the city announced a doubling of the existing stamp duty , or DSD , to 8.5 % to target investors who want to buy a second property to lease . From April 2010 , that rate had been set at 4.25 % . In October 2012 , to target short-term investors seeking to flip a house for profit , Hong Kong extended the existing special stamp duty , or SSD , on property resales from two to three years . If the owner sold the property within six months of purchase , a 20 % duty would apply -- between one and three years , a 10 % levy would apply . Also in October , Hong Kong enacted a 15 % buyer 's stamp duty , or BSD , against home purchases by foreigners . `` Altogether , we 're talking about an additional 40-plus percent increase in costs , '' says Lo . `` So you can imagine if you 're the buyer then you 're just going to hold on and wait . '' Hong Kong 's layers of levies have also stifled interest from mainland Chinese buyers -- with the 15 % tax for foreigners widely interpreted as an attempt to stop them . `` Two years ago , 40 % to 50 % of all home transactions in Hong Kong were by mainlanders , '' adds Lo . `` Now most buyers are local and most mainlanders are n't making any moves . '' In Hong Kong 's super luxury market , defined around $ 13 million and above by Colliers , `` mainland buyers have all dried up '' says Lo . Regular luxury homes , defined at around $ 2.5 million and above , can often be found in Hong Kong 's prime districts of the Mid-Levels and the Peak . `` Two years ago , we would normally have ten to 15 luxury home sales every week . Now it 's less than five , '' Lo says . Hong Kong property has notoriously been some of the most expensive in the world for years . As recently as spring 2012 , Savills found Hong Kong as the most expensive in a company survey , outranking Singapore , London , Tokyo and Paris . Property prices soared in the special administrative region 50 % between 2010 and 2012 . Just last year , Hong Kong 's priciest apartment -- the Frank Gehry-designed Opus -- sold for $ 58 million making it one of the most expensive residential properties in the world . But now , as property transactions fall , property prices will follow , say Lau . `` They are falling already , '' he says . `` The average price correction has been 2-3 % from March and April -- and it will carry on in May . But property prices have dropped by as much as 6 % between January and March for some properties already . '' Lau adds that property prices `` are very likely '' to continue to fall but by `` no more than 10 % '' . `` It 's all supply and demand . Demand has dropped significantly even as supply has stayed the same . The only option is to lower the price . ''
Hong Kong property sales fell 60 % in April 2013 year-on-year . Government policies aimed at short term investors , mainland Chinese taking effect . Fall in sales volumes hit both residential and commercial properties . Comment: Average property prices fell 2-3 % since March ; may fall no more than 10 % .