Pick-up in market activity recorded in Hong Kong residential segment in April and May

But demand for luxury units remained soft.

Market activity picked up in April and May, albeit off a lower base of comparison with average monthly home sales reaching 5,026 transactions, up from the 3,596 in the first quarter of 2014 and 3,814 in the second quarter of 2013.

According to the quarterly summary on the Hong Kong property market (2Q14) by JLL Hong Kong, however, demand for luxury units remained soft, with preliminary data showing 49 properties priced above HKD 50 million being traded, down 9.3% q-o-q and 5.8% y-o-y.

The report also noted that luxury rents continued to trend lower with leasing activity in the top-end of the market remaining subdued.

Here's more from JLL Hong Kong:

The government relaxed conditions associated with the Double Stamp Duty (DSD) policy in 2Q14. Under the changes, second-home buyers can seek a refund of the DSD if the old flat is sold within six months of the conveyance date rather than the agreement for sale and purchase date of the new flat.

Activity was largely driven by sales in the primary market as developers continued to offer discounts to attract the interest of buyers.

Eight residential sites were sold via government public tender for a combined HKD 9.4 billion in 2Q14.