Hong Kong’s residential market saw June sales increasing by 0.7% from May to a total of 4,620 units, according to Land Registry data cited in a report by real estate consultancy Knight Frank.
The gain was attributed mainly to the new developments market. A prime example of this segment’s strength is Park Yoho Venezia, which sold more than 90% of its available units in a matter of hours on its first day of launch, according to Knight Frank.
In another sign of the continuous interest in the ultra-luxury market, the top-floor unit in Severn Villa on the Peak sold for 232 million Hong Kong dollars, close to $30 million, making it the most expensive apartment in the territory.
MORE:Big Chinese Developers Push Into Hong Kong Market
The price per square foot in that transaction was $21,981. By comparison, the average price per square foot in Hong Kong stood at $2,740 in the first quarter of 2016, according to a previous report by Knight Frank.
In the first quarter, sales of luxury homes worth 10 million Hong Kong dollars (around $1.3 million) or above plunged 62% from the year before, amid economic uncertainties and increased supply—the government announced that seven residential sites with rooms for 4,800 apartments will become available for sale in the third quarter.
MORE:Hong Kong Mansion Sets New Record Price for the City
Given those factors, plus the uncertainty surrounding the Brexit vote in the U.K., Knight Frank maintains its forecast of a 5% to 10% drop in luxury home prices in Hong Kong this year. The expected decline, however, should attract bargain hunters, according to Pamela Tsui, Knight Frank’s senior manager for research and consultancy for Greater China.
“The trend is expected to continue, with developers offering deep discounts and aggressive mortgage schemes to boost sales,” said Tsui.