Staff reporter

Hong Kong's property market gained traction yesterday and Financial Secretary Paul Chan Mo-po said the market may return to the state prior to the launch of property cooling measures, thanks to a strong local banking system, healthy loan levels and eased rules for mortgage loans.

Chan said both land and housing supplies are adequate in the city and can provide sufficient room for adjustment in the event of any market fluctuation.

Earlier in the policy address, the mortgage loan-to-value ratio was eased to 70 percent, enabling home buyers to borrow more from the banks.

In the primary market, developer Chinachem yesterday sold all 198 flats of its Cheung Sha Wan project Echo House, pricing the units from HK$4.5 million to HK$12.6 million - or HK$13,252 to HK$21,292 per square foot - after discounts.

Louis Chan Wing-kit, Asia Pacific vice chairman of the residential division at Centaline, said the primary market recorded 2,500 deals this month, and believed the number in October would rise to a seven-month high.

Meanwhile, all Cullinan Sky units that developer Sun Hung Kai Properties (0016) had included in the price lists of the Kai Tak project were also sold out in four rounds on the weekend, leaving only some flats to be sold by tender.

The developer raked in over HK$9 billion by selling 842 units.

Sun Hung Kai said it will advance the second phase of Cullinan Sky to meet "hot demand," of which the price will be increased when the new phase is launched as early as November.

However, the secondary market came under pressure as homebuyers focused on new homes. The 10 major housing estates recorded 13 deals over the weekend, one less from a week earlier, according to Centaline Property.

Chan Wing-kit said that not many cheap units were left in the secondary sector as most owners were not prepared to offer big discounts amid a market recovery, which, he said, led to a low number of deals.

Cullinan Sky was in hot demand. SING TAO

Property sector gains traction