Hong Kong's November homes sales jump to six-month high as buyers take advantage of relaxed mortgage policy, price cuts

The Cross-Harbour Tunnel remains shut due to roadblocks on November 17. Intensifying clashes between protesters and police hurt property market sentiment last month. Photo: Winson Wong
Hong Kong home sales surged to a six-month high in November on the back of an easing in mortgage lending policy and developers' aggressive marketing of new projects, but market watchers say sales are unlikely to be sustained this month.
Overall residential transactions surged 43.9 per cent month on month in November to 5,756, while value jumped 17.4 per cent to HK$47.78 billion (US$6.1 billion), according to figures from Land Registry on Tuesday. The number of transactions was also the highest since 8,208 deals were recorded in May. It was also the second consecutive month of rising deals.
Including homes, shops, industrial and office units, overall deals jumped 32 per cent month on month to 6,701 in November.
"Sales of new homes saw significant growth [as they] benefited from the relaxation in mortgage requirements and interest-rate cut, which prompted developers to actively launch new projects," said Derek Chan, head of research at Ricacorp Properties.
Clashes break out between riot police and students protesting as they exchange tear gas and petrol bombs at the Chinese University of Hong Kong in Sha Tin, on November 12. Photo: Sam Tsang alt=Clashes break out between riot police and students protesting as they exchange tear gas and petrol bombs at the Chinese University of Hong Kong in Sha Tin, on November 12. Photo: Sam Tsang
He said that the number of new homes sold surged 54 per cent month on month in November to 2,091 as developers cut prices and offered discounts to attract buyers, while sales of used homes rose 39 per cent to 3,364 amid lower asking prices.
Market observers said that because of the time lag between buying and registering a property with the government, which is typically about four weeks, the November transaction figures better reflect the state of market in October.
But Chan expects transactions in December to sink more than 40 per cent month on month to just 3,850, the lowest this year, as sentiment had been dampened by heightened violence in the first two weeks of November.
The sentiment was echoed by Louis Chan, Asia-Pacific vice-chairman at Centaline...