Luxury residential rents on Hong Kong Island lost an average of 6.21 per cent in July, according to Chesterton Petty. Because of the increasing supply of properties for lease, the property consultant said landlords were more flexible on asking rents, boosting the number of major transactions worth more than HK$70,000 per month. New projects for lease included Regence Royale in Mid-Levels and The Summit in Stubbs Road. Chesterton Petty said luxury rents in Island South fell 10.86 per cent, while those in Mid-Levels dropped 5.69 per cent in July. Rents on The Peak and Happy Valley decreased by 2 to 3 per cent. Luxury home prices on Hong Kong Island declined an average of 4.4 per cent to HK$5,607 per square foot, it said. A 5 per cent decrease was recorded on The Peak, Island South and Mid-Levels, while Happy Valley experienced a 2.8 per cent decrease in prices. In the mass sector, prices in 20 major residential estates averaged HK$2,785 per square foot, down a modest 1.61 per cent from the previous month, it said. While 13 of the 20 estates registered price decreases of 1 to 6 per cent, the other seven experienced a 1 to 4 per cent improvement in prices, it said. The lingering high unemployment rate and unfavourable economic news from the United States depressed both supply and demand for primary sale flats. But Chesterton Petty expects primary sales of private flats to boom in the coming months with accumulated purchasing power being unleashed.