Hong Kong housing

Hong Kong new flat sales exceed 10,000, highest six-month figure since 2005

PUBLISHED : Wednesday, 05 July, 2017, 7:48am
UPDATED : Wednesday, 05 July, 2017, 8:05am

Hong Kong developers’ aggressive home financing scheme and bigger mortgage loans have pushed sales of new flats to surpass the 10,000 mark in the first half of this year, the highest six-month figure since 2005, according to property agents.

The first-half figure from agents came as the Land Registry announced on Tuesday that the number of residential property transactions, in both the primary and secondary markets, jumped 6.4 per cent to 6,100 last month from May.

The total sales value rose 10.4 per cent to HK$59.1 billion (US$7.56 billion), the registry said.

It said overall property transactions, including shops, parking lots and industrial units, increased 4.9 per cent to 7,902 last month from May.

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Ricacorp Properties’ head of research Derek Chan said the robust sales of new flats in the first six months this year were due to developers’ aggressive push in marketing their new projects ahead of a possible interest rate rise in the coming months.

“The momentum will continue in the second half,” he said, adding that deals for the second-half could also be around 10,000.

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For the first six months, he said the number of transactions for new flats were 10,214, with a total value of HK$136.7 billion.

Sales of new flats accounted for 23.8 per cent of the 42,813 overall property transactions in the first half this year, and 30.3 per cent were purely residential deals .

“It is the first time in 13 years that the first-half figure increased to above the 10,000 mark,” he said.

Among the new projects launched, Cheung Kong Property (Holdings)’ Ocean Pride in Tsuen Wan was the most sought-after project during the first half this year.

There were 937 registered transactions at Ocean Pride, followed by 904 deals at the Pavilia Bay in Tsuen Wan and 751 deals at Cullinan West atop Nam Cheong Station.