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The government is warning homebuyers to be cautious. Secretary for Development Paul Chan says home prices in the city are expected to fluctuate in the near future. Evelina Leung reports. Sky-high properties prices have become common in Hong Kong. However, this could change. Secretary for Development Paul Chan wrote on his blog that the supply of private homes is expected to increase in the next few years. The price gap of brand new and second-hand homes will narrow. And first-hand homes could cost less than second-hand properties. Next year, there could be 20,000 new units available. And it doesn't stop there. Speaking to the press today, the development chief said there could be 85,000 brand new flats built in the next three to four years. He added the home price index in Hong Kong only reflects the second-hand market. Chan said it is worth noting that price gap between new and second-hand flats has been narrowing. Previously, new homes were about 20 percent more expensive than second-hand homes. Now, in some areas, brand-new homes even cost less. Chan also warned that external factors could affect the local property market in the second half of 2015
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