Luxury residential prices climbed slightly in 3Q14

But transaction volume remained low.

Luxury residential prices in Hong Kong rebounded slightly in the third quarter of 2014, and transactions were mainly reported in the traditional prime areas on Hong Kong Island.

According to a research report from Savills, further, the transaction volume remained low, with demand driven by end users, supported by the price rebound in Q3/2014.

Luxury residential prices increased by 2.9% and 2.0% on The Peak and Southside, respectively, in Q3/2014.

The townhouse market was largely stable (-0.2%) in Q3/2014, although transaction volumes remain weak.

Here's more from Savills:

Notable transactions in this quarter include the sale of a residential site at 35 South Bay Road in Repulse Bay for HK$808 million on behalf of Fook Lee Group. A house (5,848 sq ft saleable) at 10 Bowen Road, Mid-Levels, was sold for HK$400million.

Kowloon and the New Territories. The secondary luxury residential market in Kowloon and the New Territories faces strong competition from the primary market.

As a result, luxury price trends in Kowloon and the New Territories remained subdued in Q3/2014, with both down around 0.6%. Activity in the Kowloon market has been focused on the sales at 1&3 Ede Road, 8 LaSalle and Paxton.

For example, units A & B on 9/F of Tower 2 (plus two parking spaces) of 1&3 Ede Road were sold for HK$124 million. The property has a total saleable area of 4,848 sq ft, meaning a sale price of HK$23,824 per sq ft.