Hong Kong’s May property sales surpass 6,000, highest monthly level since July

PUBLISHED : Friday, 03 June, 2016, 12:28am
UPDATED : Friday, 03 June, 2016, 12:28am

Hong Kong’s overall property sales in May exceeded 6,000 deals for the first time since July amid more new project launches during the month, but industry experts believe the market has not fully recovered.

The number of sale and purchase agreements for all properties including apartments, shops, industrial units and car parks reached 6,065 last month, up 8.1 per cent from April, according to data released by Land Registry on Thursday.

But the number of deals was 11.3 per cent fewer than a year ago.

“It is the highest in terms of transactions in the past 10 months,” said Buggle Lau, chief analyst at Midland Realty.

Sales of new homes saw a month-on-month 15.9 per cent rise to 1,476 deals in May, while transactions in the secondary residential market recorded a month-on-month 4.1 per cent decline to 3,354 deals last month.

He expects the number of deals will fall by 6 per cent to 5,700 this month as fewer projects are brought forward into active sales.

For the month of June, Midland Realty forecasts transactions in the secondary market will remain around 3,400, while overall property deals will fall below 6,000.

Land Registry data showed total transaction value rose 15.1 per cent to HK$48.7 billion in May.

Lau believes the total number of transactions for the first half of this year could drop to 27,000, reflecting the lowest level for the half-year period since since 1991.

Centaline Property Agency said sales of new flats in May amounted to HK$20.7 billion in May, up 31 per cent from April’s HK$15.8 billion.

During May sales in the primary residential market mainly came from the Urban Renewal Authority’s first subsidised residential development, De Novo, in Kai Tak which registered 225 transactions worth HK$1.19 billion, said Centaline.

Hang Lung Properties Long Beach development in Tai Kok Tsui recorded 183 deals worth HK$1.82 billion and 177 transactions at Sun Hung Kai Properties Ocean Wings in Tseung Kwan O.

In the secondary residential market, there were 60 deals recorded at Kingswood Villa in Tin Shui Wai, 45 transactions at Sha Tin City One, and 32 deals in Mei Foo Sun Chuen and 21 in Taikoo Shing.