Home sales in Hong Kong jumped 33 percent last month, as demand prevailed over the government’s measures to curb property prices by committing to increase land supply and tightening mortgage rules.
Total sales of homes hit HK$69.2 billion ($8.9 billion) in August from HK$52.2 billion in July, according to the Hong Kong Land Registry. By volume, the total number of units sold surged to 14,699 in August from 12,957 in July.
According to Centaline Property Agency Ltd., home prices in the city-state rose 45 percent since the start of last year on the back of low mortgage rates, as well as the influx of wealthy buyers from mainland China.
Last month, the Hong Kong government raised down payment ratios, and committed to increase land supply amidst concerns that housing in Hong Kong is becoming unaffordable.
Separately, prices of property in the two government state land auctions held since the announcement of new measures have surpassed estimates. Hong Kong joined Singapore in implementing anti-speculation measures, underscoring the asset bubble risks in Asia, as low interest rates in the US and the economic recovery in the region may spur demand.