Property transactions registered with the Government fell to 6,086 last month, down 33.4 per cent from April's 9,138, according to Centaline Property Agency.
The agency, which compiled the figures based on Land Registry records, said the fall in transactions was due to the sharp decrease in first-hand residential deals. Total transactions dropped about 17 per cent to HK$17.72 billion last month. Centaline said the transaction value was influenced by inclusion of the HK$1.38 billion sale of the Grand Millennium Plaza office tower in Sheung Wan.
Last month's figures better reflect the market activity in April, due to the normal four-week time lag between transaction and registration.
Agents said residential buying activity shrank further last month, which would be reflected in the registration figures this month.
Midland Realty estimated transactions for the first six months of this year would fall about 30 per cent to 41,000 from the same period last year. Midland chairman Freddie Wong Kin-yip said residential prices had fallen more than 10 per cent this year and had put a number of flat owners in negative equity.
