Opinion | Beware of drowning as property policy changes the tide
Buyers run risks if they fail to factor in plan by chief executive to boost housing supply
If transaction volume is an indication of public confidence in the vision laid out for the property market by Leung Chun-ying in his first policy address last Wednesday, the new chief executive will be disappointed.
Shrugging aside assurances that housing supply increase and so pressure on prices would ease, buyers stormed into the market after the speech and many sellers reportedly raised their asking prices by 5 to 10 per cent.
In the primary market, 223 flats were sold at the weekend, up by almost half on the number sold in the previous weekend, according to a report by BNP Paribas.
In the secondary market, 46 flats were sold in the 10 largest residential estates tracked by Centaline Property Agency, the most since May last year and 44 per cent higher than that of the previous weekend.
The big jump in sales arose partly out of relief that Leung did not use his first policy address to announce a further crackdown on demand and price growth in the housing market. Instead, he unveiled ambitious plans to boost land supply and address the city's acute housing problems.
In the short to medium term, he aims to add 300 hectares to the amount of land designated for housing, an area capable of yielding 128,700 new flats by 2020.