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Hong Kong property sales up 6 per cent in 2012

PUBLISHED : Tuesday, 01 January, 2013, 12:00am
UPDATED : Tuesday, 01 January, 2013, 5:30am

Property sales in Hong Kong are expected to have risen 6 per cent last year, with the total value of deals climbing to a two-year high thanks to rapid growth in home prices.

Patrick Chow, head of research at Ricacorp Properties, predicted total property transactions, including homes, offices and car-parking spaces, amounted to 115,504 in 2012, up 6.14 per cent from the 108,814 deals conducted in 2011.

The agency forecast total transaction value for 2012 will show a 10.56 per cent year-on-year increase to HK$650 billion. In 2010, the total property transaction value reached HK$689.48 billion.

However, last month total transactions are forecast to have plunged 22 per cent to 9,000 deals, from 11,581 in November, he said.

The Land Registry has yet to release figures for December.

"It was like a roller-coaster ride for the property sector," he said.

The market started the year with painfully low sales volume, then swung in the opposite direction in March before calming again when the government introduced the 15 per cent buyer's stamp duty for corporate buyers and non-permanent residents on October 27.

The total number of property deals included an estimated 68,500 second-hand homes that changed hands in 2012, down 8.9 per cent on 2011.

Ricacorp predicted sales in the primary market could show a 15.86 per cent increase to 12,900, compared to 10,854 deals in 2011. According to Centaline Property Agency, home prices rose 17 per cent in 2012.

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