Hong Kong home sales jump to 14-month high in August in response to stabilizing prices

Home sales in Hong Kong jumped to a 14-month high in August, in a positive response to the sector’s stabilizing prices. Also, property developer cashed in more profit following improved consumer sentiment in the real estate sector.

The number of home sales reached 5,821 in August, with a value of HKD40.6 billion (USD5.2 billion), according to a release on the Hong Kong Land Registry’s website on Friday. That is up from 4,243 units changing hands in July, with a value of HKD29.7 billion.

Prices reached their low at the end of March, more than 13 percent below their peak last September. The recent recovery has left them 9.4 percent below the September high, Bloomberg reported, citing data from Centaline Property Agency Ltd., which tracks secondary sales.

Further, 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 percent offered by Hong Kong developers. Meanwhile, prices are expected to fall further 10 percent as a pipeline of new developments is met by stalling income growth and looming interest rate hikes, Nomura Holdings Inc. reported on Tuesday.