Secondary market sales jump 15pc

PUBLISHED : Wednesday, 24 October, 2007, 12:00am
UPDATED : Wednesday, 24 October, 2007, 12:00am

Home sales in the secondary market have hit a 2 1/2-year high as buyer confidence returns.

There were 678 transactions recorded at 50 key housing estates between October 15 and 21, according to property agent Ricacorp Properties. That was 15 per cent higher than the 588 transactions of the previous week, which also saw the highest sales volume since the third week of March 2005. Home prices have increased 1.5 per cent.

Another survey by property agent Midland Realty also showed sales volume surged, with 407 deals done in 35 major housing estates. That represented a rise of 4.1 per cent compared with the previous week.

Sales activity was strong in Kowloon with 151 deals recorded, up 11.9 per cent from the previous week.

The biggest growth was in Mei Foo Sun Chuen, with 38 units sold, up 81 per cent from the previous week, Midland said.

However, secondary home sales at Island Harbourview in West Kowloon slowed as Hang Lung Properties launched its Long Beach development in the same district. The developer said it had sold 350 units by Sunday, reaping HK$1.8 billion.

Anita Cheung Pui-lui, a research manager at Midland, said with buyers' confidence returning to the market, sales of secondary homes would exceed 10,000 deals this month.

Buyers also showed growing interest in the New Territories, said David Chan, a sales director at Ricacorp Properties.

He expected transactions to rise in Yuen Long, Tuen Mun and Tung Chung, where home prices are lower compared with flats in urban areas.