Sales volumes in Hong Kong increased by 34.4% in September compared to the previous month to reach a four-year high, according to data from the Land Registry.
The pick-up in activity over the course of the month was primarily as a result of a strong rise in sales of new-build property, as more end-users and investors entered the market.
As a result, a number of new residential developments were over-subscribed in September. For instance, over 95% of the 545 units available in One Kai Tak, in Kowloon City, were sold within a week of launch, while The Papillion, in Tseng Kwan O, sold all its 857 units within a month.
In the land market, major developers continued to adopt aggressive bidding strategies to fend off increasing competition. This is expected to continue as land sales tenders have become more competitive with developers from the Mainland increasingly active.
In order to reach the housing supply target, five government sites and two MTR projects, capable of providing 4,600 flats in total, will be put up for tender in the coming three months.
Despite abundant housing supply and a potential interest-rate hike, strong residential demand and developers’ competitive sales packages have resulted in a significant rebound in transaction volumes. Home prices, therefore, are set to remain stable over 2016.