HK resale home transactions up 90 per cent, despite measures

The number of used home sales in some of Hong Kong’s biggest private housing estates jumped 90 per cent at the weekend compared to the previous weekend, underscoring optimism that government measures may only have limited impact on home prices.

There were 116 deals recorded over Saturday and Sunday at various projects, including Tai Koo Shing in the Island East district and Mei Foo Sun Chuen in Kowloon, Centaline Property Agency, the city’s biggest privately-held real estate broker, said yesterday.

The government will stop offering residency to foreigners who buy properties in the city and will begin a rent-to-buy programme for first-time buyers, Chief Executive Donald Tsang had said last Wednesday in his annual policy address.

These followed a series of measures announced last October to rein in home prices that have surged on the back of record-low mortgage rates and an influx of mainland Chinese buyers.

The Hang Seng Property Index, which tracks the city’s seven biggest developers, is up 14 per cent this year.

Home prices have surged almost 50 per cent since the start of last year, according to Centaline.

The Hong Kong government will continue to boost land supply and expects 61,000 new units to come onto the market in the next three to four years, Mr Tsang had said.

Source : Today – 18 Oct 2010

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