New Projects Boost HK's May Home Sales

Source : The Business Times, June 3, 2008

(HONG KONG) Hong Kong's existing apartment sales rose last month from a month earlier as homebuyers' confidence was boosted by sales in new projects during the month.

Transactions for 10 of Hong Kong's biggest private-housing projects rose to 596 last month from 454 in April, according to figures compiled by Centaline Property Agency Ltd.

'In May, buyers' focus has actually been on the luxury new apartments,' Louis Chan, managing director of residential properties at Centaline, said in a phone interview yesterday. 'This has bolstered the confidence of less-affluent buyers. You can expect the market to be dominated by the less-expensive second- hand apartments in June.'

Cheung Kong Holdings Ltd has sold more than 420 apartments at its Celestial Heights development in the city's Ho Man Tin district since the project went on sale on May 21, the Hong Kong Economic Times reported yesterday, citing executive director Justin Chiu. The sale brought in over HK$11 billion (S$1.9 billion) for the company, the newspaper said.

Sun Hung Kai Properties Ltd, the city's biggest developer by market value, sold a house in the Peak district for HK$285 million, according to spokeswoman Fiona Wan.

The unidentified buyer paid the equivalent of HK$57,000 a square foot, a record in Asia, for the unit at the Severn 8 project, Hong Kong's Sing Tao newspaper reported yesterday. She declined to confirm whether the sale set a record.

Hong Kong's economic growth unexpectedly accelerated in the first quarter as exports to China and Europe climbed. -- Bloomberg-