The Hong Kong's property market bubble may burst as Hong Kong tycoon Li Ka-shing's Cheung Kong Limited and the special administrative region's largest commercial real-estate agency Sun Hung Kai Properties have been underselling their inventory and price decline is up to 45%.

The Hong Kong government had formulated certain policies to control housing prices after they peaked to a new high during the first quarter of 2013. However, Li's company began selling his properties rapidly in mainland China and Hong Kong, which was considered as a sign of an imminent crash in the property market in Hong Kong.

Lee Chun, a manager at Click Property Agency Limited, a Hong Kong real-estate consultancy firm, said that transaction volume, which was earlier pegged at about 300 a month, had now dropped to 10-20 a month.

Louis Chan, Centaline Property Agency's head of residential sales also stated that the secondary market had declined by 75% to 2,000 from 8,000 a month. It is estimated that the downturn in the real-estate sector will drag down the company's sales by 60%.

The falling house prices and plummeting transaction volume have led to property agencies facing bankruptcy and have boosted the unemployment rate in the sector.

A total of 110 property agencies shut down at the end of 2013, according to Tony Kwok, the chairperson of the Property Agencies Association of Hong Kong.

The number of licensed sales agents stood at 35,645 in January this year, down by 1,033 from a year ago.

The crisis being experienced by the Hong Kong property market has also triggered fears of a possible market crash in the first-tier cities on the mainland, as house prices in Beijing, Shanghai, Guangzhou and Shenzhen have become extremely unaffordable.