Hong Kong's surging weekend property sales show rebound underway

[HONG KONG] Hong Kong's surging weekend home sales added to signs that the property market is heating up and prices may once again set records.

Developers sold 1,220 new units, the most in six years, according to the Hong Kong Economic Journal. That included all 500 homes on sale at Wheelock Properties Ltd.'s project Montara in Tseung Kwan O, government records show.

Positive sentiment has prompted developers to put more homes on the market, said Patrick Wong, a property analyst with Bloomberg Intelligence.

Also doing well: used home sales. The city's HK$40 billion (S$6.96 billion) of secondary home transactions in April were the most in more than eight years, figures from Centaline Property Agency Ltd. show.

Buyers have regained their confidence because of this year's stock market gains and the outlook for low interest rates.

Home prices have climbed for three straight months, regaining much of the 10 per cent lost in a tumble from last August's record level.

"It is returning to its peak, possibly in the third quarter," said Wong. "The positive sentiment we are seeing now is sustainable, while limited supply in the secondary market also plays a large role."

BLOOMBERG