On the up: Hong Kong property sales in modest recovery but overall figures still down

Property sales in Hong Kong bounced back modestly last month after a sharp decline in August, but total sales volume was still 31.6 per cent down on September last year, despite incentives from developers.

Overall transactions in September rose 5.2 per cent from the previous month to 5,467, with a total sales value of HK$41.4 billion, up 8.6 per cent. Residential transactions rose 9.4 per cent month-on-month to 4,263 deals, on transaction values of HK$33.5 billion, up 7.9 per cent, according to the Land Registry.

In August, total property transactions fell 29.2 per cent from July to 5,197, the lowest level in 17 months. Residential transactions plunged 27.8 per cent.

Analysts said the bounce-back was helped by the flexible incentives being offered by developers seeking to speed up sales before interest rates start to rise, something now expected by the end of this year.

"Last month's increase was mainly helped by positive sales in the first-hand residential market," said Derek Chan, head of research at Ricacorp Properties. "But it does not mean the housing market has been recovering. Sales in the secondary market continue to fall."