Next week's land auction may help stimulate housing sector
The number of home purchases in Hong Kong should bounce back this month, after dropping for four months, in a shift that may signal the housing sector is moving out of the doldrums, property agents say.
Monthly property transactions would rise in the fourth quarter on the back of more new primary project launches and restored buying confidence, strengthened by the coming public land auction and continued improvement in the economy, they said.
Hit by rising interest rates, monthly property transactions fell sharply from 16,551 deals in April to 9,114 last month.
Midland Realty chief analyst Buggle Lau Ka-fai said that transaction volume would grow 4 per cent month on month to 9,500 this month. Monthly transaction volume would reach 10,000 by the end of the year.
In the first half of this month, 4,370 property transactions were lodged with the Land Registry, up 5.5 per cent from the same period last month.
Among them, purchases of secondary flats picked up steadily to 3,375, 6.8 per cent higher than the 3,159 deals achieved last month.
