Hong Kong home sales hit 14-month high in August as mood lifts

[HONG KONG] Hong Kong residential home sales reached 5,821 in August, the most in at least 14 months, as property developers sold more new units and sentiment improved in response to stabilising prices.

The value of residential sales during the month was HK$40.6 billion (S$7.1 billion), up from HK$29.7 billion in July when 4,243 units changed hands, according to a release on the Hong Kong Land Registry's website on Friday.

Demand from buyers has slowly recovered since home sales fell to a 25-year low of 1,807 units in February, spurred by aggressive discounts of up to 18 per cent offered by Hong Kong developers.

They are also providing mortgages worth as much as 120 per cent of a property's value.

Prices reached their low at the end of March, at more than 13 per cent below their peak last September.

The recent recovery has left them 9.4 per cent below the September high, according to data from Centaline Property Agency Ltd, which tracks secondary sales.

BLOOMBERG