According to global real estate consultant JLL’s Hong Kong Residential Sales Market Report, recent signs of stabilisation within Hong Kong’s residential property sales do not indicate the property market has turned a corner.

Improved market sentiment saw home sales climb to an 11-month high in May 2016. Land Registry data released in June show that the volume of residential property transactions in May reached 4,620, up 0.7% on May, though the total value of home sales slid 20.3% compared to a month earlier, indicating a massive drop in the average price achieved per unit.

JLL reports that the Hong Kong property market should face increasing downward pressure in the coming months due to large-scale launches in the pipeline.

Henry Mok, regional director of Capital Markets at JLL in Hong Kong, said: “Considering that several projects with more than 1,000 flats each will be launched onto the market in August, initial prices will likely be slashed to lure buyers, and may lead secondary home prices downwards.”