Nearly five years since then financial secretary Donald Tsang Yam-kuen's dramatic defence of the Hong Kong dollar and stockmarket, the property sector remains a central pillar of the Hong Kong economy, but its importance has significantly diminished. As the economy continues to struggle against the deflationary forces unleashed by the Asian financial crisis, a prolonged slump in flat prices shows few signs of abating.
When property prices finally bottom out the cycle will end and the territory's beleaguered economy can get back on track - or so the theory goes.
Residential property prices have declined 65 per cent in the past five years. In that time, Hong Kong has weathered two recessions.
Amid growing calls for help from both the industry and the tens of thousands of people living in negative equity, the government released a nine-point plan in November to arrest the price slide. Measures included the suspension of all land auctions until the end of next year and an end to subsidised home sales.
Optimists hoped this year would finally see property prices start to pick up again, but few could have foreseen the debilitating effects of a previously unknown virus.
The severe acute respiratory syndrome (Sars) outbreak that began last month has paralysed the territory, halving economic activity in a matter of weeks.
