Hong Kong banks have begun applying the brakes on home loans, and the consequences are already visible as the recent run of world record-breaking purchases of luxury homes in the city comes to an end.

'Transactions in luxury units fell 30% last week compared with a week earlier,' said Terence Tong, a director at Centaline Property Agency.

Until that turnaround, wealthy investors had been pouring capital into the luxury sector of the market, running up a total of 1,351 transactions valued each at HK$10m and above last month, almost triple the volume of sales in August, according to a report by property consultancy CB Richard Ellis.

South China Morning Post