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Price plunge pumps-up flats sales

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Property transactions picked up significantly last month to the highest volume in eight months, as developers sought to boost the market with a series of price discounts at key projects.

Deals registered with the Land Registry last month rose 87.6 per cent to 9,723 compared with October, according to government data.

However, the value of transactions increased just 18.3 per cent to HK$16.8 billion, reflecting the fact that most properties were sold at low prices, analysts said.

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The volume increase represented a recovery from the exceptionally poor market in October, which was hit hard by the September 11 attacks, but it was doubtful whether the strong sales record would continue in view of the economic downturn.

The transaction volume in October was 5,183, the worst recorded since February.

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Property agents said last month's pick-up was driven by strong new home sales as developers cut prices to attract buyers.

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