Chief executive Carrie Lam Cheng Yuet-ngor said a trade war will exert pressure on asset prices, but the government has no plans to relax property cooling measures or ease the cap on mortgages.
Homeowners have offered to trim asking prices for properties after Lam's policy address.
Prices of second-hand flats at Island Resort in Siu Sai Wan have been trimmed by about 12 percent. A property owner, who has been trying to sell a three-bedroom flat in the housing estate, agreed to offer a HK$1.5 million discount and sold off the flat for HK$10.5 million.
As local interest rates look set to rise, developers are stepping up the pre-sales of flats in new projects even as they remain positive on the prospects of the property market.
"The desire to own a flat remains strong among Hongkongers amid expectations that prices will continue to rise steadily," said Wang On chief operating officer Chow Chun-ho.
Country Garden (2007) and Wang On (1243) launched a new project, Altissimo, which will provide 547 flats. About 70 percent of the units have one to two bedrooms.
Chow said Wang On will boost its land bank by bidding for available sites and urban redevelopment projects.
Meanwhile, Chinachem and the and MTR Corp (0066) yesterday unveiled the sales brochure for their joint venture Sol City project in Tsuen Wan. It will provide 720 flats and no less than 144 units will be offered initially.
Chinachem sales director Ng Shun-mo said a new development north of Kam Tim will be used as reference to determine prices for Sol City flats.
Despite recent fluctuations in the city's stock market, Ng said Chinachem remains confident in the growth prospects of the local property market.
"Developers should take a positive, not a pessimistic, view of the market," he said.
The property market might have peaked in the past month or two but the sector will continue to post steady growth, Ng said.
Meanwhile, some property consultants said housing supply depends largely on market sentiment.
Jones Lang LaSalle managing director Joseph Tsang said demand for private housing softened recently due to uncertainties arising from the China-US trade war and expectations of rising interest rates.
He said the short supply problem lies mainly in the public not the private housing sector.
"The government's plan to raise the public to private housing ratio will not result in an increase in prices of apartments in the private housing market," he said.
"The housing shortage is in the public not the private sector and we believe that the government is taking the right direction," he added.