Sales of Hong Kong luxury homes rose to their highest in six months in January, indicating that prices may have stabilized as buyers seek bargains, according to data by Centaline Property.
Completed transactions of existing properties increased 31% from December, and the value of the deals rose 9% to US $348 million), the highest since July.
Marcos Chan, an analyst from Jones Lang Lasalle said, a lack of supply and lower prices bolstered sales of existing luxury homes. Prices for luxury homes dropped 19% in the fourth quarter from the preceding three months.
He said, ‘Since the meltdown of the financial markets in the fourth quarter, it’s no surprise to see a rebound after a sharp drop. 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.
January was the second straight month that transactions for existing luxury homes rose, posting a cumulative increase of 82%.
Bloomberg reported buyers from China, Australia, Europe and the U.S. have expressed interest in the pre-launch sale of The Cullinan penthouses, shown above.
Overall, January home sales in Hong Kong gained 3.6% from December, the Land Registry said this week.
The number of residential units sold last month totaled 4,875, a 67% drop from a year earlier. The figure includes new and second-hand public and private housing.