Developers rush to sell stock as discounts boost luxury-home sales

Developers of Hong Kong residential projects are in a rush to lock in sales while buying sentiment remains positive in the wake of discounts offered on recent new launches.

Buoyed by the positive sentiment triggered by the price discounts, 527 new homes were sold over the weekend of November 30 and December 1 - up twelvefold from the 41 sold the previous weekend and the most sold in a single weekend since October 2010.

The strong sales are likely to prompt developers to release more homes for sale ahead of possible further measures to cool the market, analysts say.

"More primary projects will be launched to take advantage of the positive sales results," said Thomas Lam, head of research and consultancy for Greater China at consultancy Knight Frank.

"If the strong sales continue for the next few months, the government may release new cooling measures."

Developers had kept their property launches on hold as buyers stayed away from the market after the government announced successive property-cooling measures from October last year onwards.

But sentiment revived two months ago when Sun Hung Kai launched The Cullinan at Kowloon Station at prices that were below secondary market prices and also offered to subsidise buyers' stamp duties.