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Property Deals Soar 60 percent to 8 month Peak
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April 2009 |
Property purchases in Hong Kong last month
surged nearly 60 per cent to the highest in
eight months, as previously nervous buyers
bet the market might be near its drought
from its double-digit percentage fall in
prices. There were 8,062 property
transactions - including residential,
office, industrial and car parks - lodged
with the Land Registry last month.
Among them, home purchases rose 58.28 per
cent to 7,102, beating a forecast by
property agents. But the number of
residential transactions still fell 25.63
per cent year on year.
The Land Registry said total transaction
values rose 80.1 per cent month on month to
HK$28.59 billion. Total home sales
value was HK$25.45 billion, up 86.81 per
cent from February's HK$13.62 billion.
Property agents said home seekers and
long-term investors emerged, boosting both
the new and second-hand housing markets.
Home prices fell about 19 per cent from last
year's peak in March, the Centaline City
Leading Index shows.
Despite optimism prevailing in the market,
Hang Seng Bank warned in a new research
report that home prices would fall a further
13 per cent in the next eight months,
bringing the drop this year to 18 per cent.
The lender based the forecast on continuing
uncertainty about the city's economic
performance.
"It may be too soon to be overly optimistic,
as property prices tend to fluctuate in
tandem with economic performance, and it is
clear the near-term economic outlook is
bleak," Hang Seng said in its Economic Focus
report yesterday.
The bank said Hong Kong's real gross
domestic product would contract 3 per cent
this year while unemployment would rise to a
peak of about 7 per cent and average 6.3 per
cent.
"With job losses mounting and income
falling, property prices are likely to come
under pressure, although the relatively
tight future supply and favourable
affordability should provide some buffers,"
Hang Seng Bank said.
The bank said sustainable recovery was out
of reach until the global economy and
financial system were fully repaired, which
seemed to be inconceivable in the near term.
Source: South
China Morning Post |
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