Home sales in Hong Kong dropped to the lowest level for the 14th straight month in June, as the government implemented several measures to curb increasing prices in the housing market.
According to the Land Registry, the total sales of home units dropped to HK$33 billion (S$5.9 billion) in June from HK$42.8 billion in May, while the number of units sold declined to 9,130 last month from 11,014 units sold in May.
The HK government has been implementing several measures to curb home prices that have surged eight percent this year, adding to the 29 percent advance last year.
Aside from increasing the release of land supply for sale and raising stamp duty on high-end residential transactions, the government is also clamping down on the sales tactics of several developers to boost transparency.
“The fall is like a hiccup in the market in response to government’s rules on new home sales announced in April,” said Nicole Wong, a HK-based regional head of property research at CLSA Ltd.
“There is no means for the government to reverse the imbalance resulting from short-term supply shortages,” she said.
Ms. Wong noted that she expects home prices in Hong Kong to increase 15 percent this year.
She added that the figure from the Land Registry is a “lagging indicator” of the real estate market, as it showed the transactions made between April and May.