Hong Kong home sales up for the first time after 8 straight months of decline, but analysts say prices will continue to fall

Property sales in Hong Kong are estimated to have picked up in March after falling to the lowest level in 25 years in February, reversing an eight-month losing streak, but analysts warn the downturn is far from over and home prices will continue to fall.

According to property agency Midland Realty’s estimates, total property transactions lodged with the city’s Land Registry last month came to 3,125 – a 21.8 per cent rise from February.

In February, Hong Kong recorded just 2,583 transactions, the lowest since Midland began the monthly survey in 1991. Home sales have been falling every month since last July.

The Land Registry will announce the official March figures this week.

Property agents said eager home seekers are returning to the market as both landlords of existing homes and developers launching new projects cut prices top push sales.

Midland said second-hand homes sales last month increased 13 per cent month on month to 1,973. Sales of new units also jumped to 639 from 233 in February as developers rolled out new projects, such as Sun Hung Kai Properties’ Twin Regency in Yuen Long.