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THE price of new houses could experience a bigger reduction than older properties this year according to economists at HSBC, report Capital.fr.

In a recent memo HSBC say that "the drop in prices is likely to be greater than anticipated due to oversupply and a decrease in household spending power".

Readjusted, HSBC's expectations now show a decline of 3.5% in the first half of 2008 for new builds, against only 1% for older properties.