Hong Kong homebuyer sentiment apparently picked up over the past three months

Developers have capitalized on this sentiment.

Over the past three months, homebuyer sentiment appears to have picked up as the market interpreted the Chief Executive’s 1 April 2014 comment of “no longer overheating” and the ensuing fine-tuning of the Double Stamp Duty as signs of policy easing.

According to a research note from Barclays, developers have smartly capitalised on the improved sentiment with new launches.

The report noted that based on Land Registry data (which carries about a four-week lag), 2Q14 primary sales reached 3,281 units and HK$30.8bn. This brought 1H14 primary sales to 6,833 units and HK$62.9bn.

Barclays said that although this is up about 57%-58% y/y, it is worth bearing in mind that 2Q13 sales were very depressed as a result of the introduction of the new Residential Properties (First-Hand Sales) ordinance in April 2013.