Real estate sales and prices in Hong Kong recovered strongly last week, suggesting that the market had overcome its jitters over the expected severity of the cooling measures announced by the government in November to rein in price growth, said analysts.
Two months after the introduction of additional taxes on short-term real estate trading, secondary market sales climbed 27 percent last week.
In another indication of renewed confidence, 85 percent of the units offered at a new housing development in Yuen Long were snapped up on the first day of its launch last Friday.
The Yuen Long sale was considered a test of sentiment in the primary market as it was the first mass housing development released on the market since the measures targeting speculators took effect.
In the secondary market, 670 sales deals were inked in the previous week in the 50 housing estates monitored by Ricacorp, up 27 percent from the 528 units snapped up a week earlier.
“Sales volume in the secondary market last week was the highest since November,” said David Chan, Sales Director at the estate agency.
The strongest sales were seen at Island Resort in Siu Sai Wan and Kornhill and Nan Fung Sun Chuen estates in Quarry Bay.
“Since property prices were holding firm and developers were reluctant to offer discounts for the new project last week, buyers decided to enter the market in anticipation of a potential price rise in the coming peak season,” said Sammy Po Siu-ming, Midland Realty Director in the New Territories.
The peak of seasonal sales in Hong Kong follows the Chinese New Year holiday weekend, which will run from 3 to 6 February this year.