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Sales jump 11.3pc in the secondary market

Home sales in Hong Kong's secondary property market rebounded last week due to improving buyer sentiment against the background of a rising stock market.

Data collated by estate agency Ricacorp Properties from deals completed at 50 large housing estates shows that secondary transactions climbed 11.26 per cent to 336 from 302 a week earlier as the benchmark Heng Sang Index vaulted over the key 20,000-point level last Friday.

The strong performance on the stock market helped boost investor confidence in the property market, said analysts.

David Chan Tai-wai, a director at Ricacorp, said sales of Le Prestige - a 1,688-unit residential project in Tseung Kwan O jointly developed by Cheung Kong (Holdings), Nan Fung Development and MTR Corporation - had digested a significant portion of consumption power in the market. But the marketing of the project stimulated demand and he now expected secondary transactions to rebound to above 350 units this week.

Over the weekend 250 units were sold at Le Prestige, bringing total sales in the project to 1,300 units since its launch on July 17 and total sales revenues to HK$7 billion based on selling prices that have ranged from HK$4,100 to HK$5,800 per square foot.

The sales pace of Le Prestige, which is phase 2A of the massive residential project at Lohas Park, is much slower than sales achieved in phase one - The Capitol - which sold out all 2,096 units on offer in about 36 hours.

But market watchers said Le Prestige sales were acceptable given its higher unit prices because of their larger sizes that range between 900 square feet and 1,300 sq ft.

The Capitol is now ready for delivery and Le Prestige is scheduled for completion by the middle of next year. Without major new projects launched, only 10 transactions were recorded in the primary market outside Le Prestige, property agents said.

Along with the rising transaction levels, average home prices in Hong Kong edged up 0.5 per cent over the week.

According to the Centa-City Leading Index, which tracks prices in the secondary market, home prices have increased 20.85 per cent this year.

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