Home sales in the secondary market have surged 60 per cent this month, triggered by a buying frenzy across the board, with Midland Realty offering generous incentives to lure agents away from rivals to strengthen its sales team.
The sharp rebound in sales and prices prompted Chief Executive Leung Chun-yin on Wednesday to warn he would act to curb property speculation to prevent "over-expansion" of bank credit and ensure the healthy development of the residential market. Home prices have gained 10 per cent since early this year.
Hong Kong Property Services (Agency) data shows there were 2,864 transactions as of August 15, up 60 per cent from the same period last month. The total value jumped 45.6 per cent to HK$12.12 billion.
"Prices for units have increased 10 per cent," said Patrick Chow, head of research at Ricacorp Properties.
He said would-be buyers who had adopted a wait-and-see attitude had rushed in after seeing prices of Home Ownership Scheme flats soar close to the level of the private market.
Patrick Tsang, senior director at Centaline Property Agency's Taikoo Shing branch, said prices for HOS project Kornhill, in Quarry Bay were HK$8,000 per square foot, just HK$2,000 less than for Taikoo Shing.
"It stirred up crazy buying at Taikoo Shing," he said, pointing out there were 13 deals done on Monday alone, compared to 14 for the week of August 6-12. Tsang said 50 units at Taikoo Shing were sold as at Wednesday (August 15), 25 last month and just 16 in June.