• The number of residential sales transactions saw an increase during the period, thanks to the sustained low interest rate environment and constant demand from both local and overseas buyers, especially those from the Mainland. According to the Land Registry of Hong Kong SAR Government, the total number of building unit transactions increased 11.4% month-on-month (m-o-m) to 12,380 in January 2010.

• Against the backdrop of a sustained volume of liquidity at over HK$200 billion (RM87.62 billion), the average transacted prices remained steady. According to the University of Hong Kong Real Estate Index Series (“HKU-REIS”), the University of Hong Kong All Residential Price Index (“HKU-ARPI”) was flat at 143.7 at the end of December 2009.

• In the primary market, there were a total of 379 residential units launched for sale between Jan 16 and Feb 15, 2010, significantly rose by 93.4% from 196 units in the previous month ending Jan 15, 2010. More new projects were offered for first time sale, including Belcher’s Hill, Island Crest, Le Mansion and Mount East. Among the four developments, Belcher’s Hill and Island Crest were 100% absorbed. Meanwhile, the overall absorption rate was at 79% during the period.

• Due to a positive market sentiment, a new round of mass residential projects is expected to launch for sale in the first half of 2010. Amid rising private consumption and expectations of growing inflationary pressure, luxury residential prices are expected to stage a further growth of 15% in 2010.