China's recent rollout of new measures aimed at easing mortgage lending has successfully resulted in an increase in home sales. For the month of November, home sales in Hong Kong surged to a six-month high, partly bolstered by aggressive marketing by major developers in the city.
According to data released by the city's Land Registry on Tuesday, overall residential transactions for November had surged by 43.9 percent when compared to the previous month. Transactions for the month reached 5,756 with an overall estimated value of $6.1 billion.
The transactions for November are the second-highest recorded for the year, with the month of May holding the record for the highest number of deals at 8,208. November also marked the second consecutive month of rising property transactions. The Land Registry's data revealed that total deals for the month, including transactions for offices, shops, homes, and warehouses, jumped by 32 percent month-on-month to 6,701.
Property experts had explained that the surge in new home sales in Hong Kong and in the mainland is largely attributed to the recent easing of mortgage requirements and the interest-rate cuts by the country's central bank. These factors had also resulted in developers actively launching new projects to take advantage of the new capabilities of homebuyers across the country.
Total sales of new homes in Hong Kong had surged by 54 percent month-on-month, while sales of used homes increased by 39 percent. Apart the aggressive marketing, average asking prices for new and used properties have gone down. This had led to more people buying property for the month of November.
Despite the consecutive two month home sale growth, analysts still predict that total deals in December could end the streak. According to analysts, the figures recorded in November essentially reflect the state of the market in October due to the amount of time it takes to buy and register a property with the government.
Analysts estimate that total home sales for December could drop by more than 40 percent month-on-month to around 3,850 transactions. The main factor that had resulted in the lowered expectations for the final month of the year is the ongoing unrest in the city, which had started around the first weeks of November.
Centaline Property Agency Asia-Pacific vice-chairman, Louis Chan, echoed the sentiments and stated that overall buyers' confidence in Hong Kong has dwindled amid the domestic unrest. The agency reported lowered property viewings over the past weeks amid disruptions in the city's transport networks.
