Primary property transactions are expected to fall 20 percent from a month ago to 1,500 in July as home prices keep rising, according to Centaline Property Agency.

Louis Chan Wing-kit, Asia-Pacific vice-chairman of the residential division at Centaline Property Agency, said more than 1,100 primary property transactions have been recorded this month while the Centa-City Leading Index, which reflects secondary residential property prices, has been hovering at record highs.

However, rising home prices have brought down transaction volumes, he said.

Over the weekend, K&K Property sold 41 units, or 52 percent out of the first batch of SkyeHi in Tuen Mun. Comprising three price lists, the first round sales offer a total of 79 one-bedroom units with areas ranging from 265 to 290 sq ft at discounted prices of HK$4.5 million to HK$6 million.

And Hip Shing Hong's Ho Man Tin project, Madera Garden was fully subscribed as the developer received more than 30 checks for its first batch of 30 units over the weekend.

Meanwhile, homebuyers were reviewing their options after six local banks suspended mortgages for China Evergrande's (3333) uncompleted projects in Tuen Mun and Chueng Shan Wan.

The buyer of a 307-sq-ft one-bedroom unit in Emerald Bay II canceled the HK$5.28 million deal and was expected to forfeit a 5 percent deposit of more than HK$260,000.

It is estimated that nearly 60 buyers from Emerald Bay II in Tuen Mun and The Vertex in Chueng Shan Wan are affected by the suspension, while there have been a total of 18 forfeitures in the primary market so far this month.

In the secondary market, Centaline's top ten housing estates recorded 18 transactions in the weekend, a 20 percent increase from a week before.

The figure has stayed in double-digits for 23 consecutive weekends, that is, in the past six months.

Among them, Kingswood Villas in Tin Shui Wai accounted for six transactions, the highest among the blue-chips estates, followed by Whampoa Garden in Hung Hom and Caribbean Coast in Tung Chung, which both recorded three transactions respectively.

Two housing estates, namely Tai Koo Shing in Quarry Bay and Mei Foo Sun Chuen in Lai Chi Kok, recorded no transactions.

Buyers line up for SkyeHi homes. SING TAO

Higher prices dampen primary home sales