HONG KONG - Hong Kong’s new home transactions hit an 11-year high in March, an encouraging sign for the beaten-down property market after the government lifted cooling measures.

There were about 4,170 sales in the period, more than 14 times the figure from the previous month, according to a report from the Hong Kong Economic Journal.

This comes after the Hong Kong authorities scrapped property curbs in late February to revive the sector. Developers are counting on the pickup in sales to reduce excess inventories that are keeping a lid on prices.

“We think that the strong sentiment for first-hand transactions should extend into April,” said chief executive Sammy Po of Midland Realty’s residential division for Hong Kong. “Even if non-Hong Kong buyers are asking for lower prices, they are showing a much higher level of interest to purchase a property.”

Part of the reason for the climb could be the launch of several new projects, including Wheelock Properties’ Seasons Place and Henderson Land Development’s Belgravia Place. Both have recorded strong results.

Over the long weekend, CK Asset Holdings released more units of its Blue Coast development on the southside of Hong Kong Island. There were 50 times more bidders than available units, as buyers eye the development’s lower pricing, discounts and proximity to international schools. The developer was expected to hold a press conference on April 2.

Still, Hong Kong’s residential market may continue to weaken in 2024, with UBS Group expecting values to decline 5 per cent. Buyers’ interest in new homes is also set to add pressure on prices in the secondary market. BLOOMBERG