Hong Kong Home Sales Volume Falls 49% After Cooling Measures Take Effect

Sales of existing homes in Hong Kong fell 49 percent this month from July, after government measures to cool the property market took effect, Centaline Property Agency Ltd. said in a report today.

The number of existing homes sold at 10 of Hong Kong’s biggest housing estates reached 699 in August, the city’s real- estate broker, said in an e-mailed report.

“The sales volume has seen rapid decline due to the government’s measures of stabilizing property market in mid- August,” Louis Chan, managing director of residential properties at Centaline, said in the release. “The foundation of the economy is healthy and solid, and we believe the outlook of the property market will continue to be good.”

Hong Kong has tightened mortgage lending rules and pledged to increase land supply on Aug. 13 as the government seeks to rein in home prices that have soared more than 40 percent since the beginning of 2009, boosted by mortgage rates at the lowest in two decades and buying by mainland Chinese.

To contact the reporter on this story: Sophie Leung in Hong Kong at sleung59@bloomberg.net

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