KUWAIT, July 12 (KUNA) -- Kuwait property market has witnessed a decline in transactions in May and June, 2012, an economic report showed Thursday.

The report, released by Kuwait-based Emaar Al-Ahlia Real Estate Company, noted that the traders' manipulative behavior has caused an unjustifiable hike in the prices of residential properties which climbed by 35 percent.

It noted that the sharp drop in oil prices as well as the recent Iranian threats to close the strategic waterway Hormuz Strait have negatively impacted the property market in Kuwait.

The political uncertain in Kuwait, particularly following the constitutional court ruling to cancel 2012 parliamentary election and reinstate 2009 parliament, have also kept traders away from the market, the report added.

Traders preferred to wait and see before taking any trading decision in this period.