Sales of Hong Kong luxury homes rose to their highest in six months in January. This according to data by Centaline Property Agency which may indicate prices may have stabilized as buyers seek bargains.
Completed transactions of existing properties increased 31% from December, and the value of the deals rose 9%, the highest since July.
Marco Chan, head of research for the Pearl River Delta at Jones Lang Lasalle, was reported by Bloomberg as saying, ‘Since the meltdown of the financial markets in the fourth quarter, it’s no surprise to see a rebound after a sharp drop in prices. Most buyers are those with old money and who hardly need to get financing from banks.’
A total of 144 transactions were completed in January, the Centaline report said. The data excludes new properties released to the market last month.
Wong Leung-sing, an associate director at Centaline, said in the report January was the second straight month that transactions for existing luxury homes rose, posting a cumulative increase of 82%.
He said, ‘With the lack of new luxury homes, buyers are turning to the second-hand market, rejuvenating activity there.’