Mainland buyers of HK homes help drive prices

A surge in purchases of Hong Kong homes by non-residents offers one explanation for what's driven an 11 percent rebound in property prices from a March bottom.

In September, 250 homes were sold to non-residents, the most in 14 months and 36 percent higher than the average for the previous four months, according to data from Hong Kong's Inland Revenue Department. That compared with a low of 62 homes going to outside buyers in February, just before the nadir of Hong Kong's property market. While the revenue department does not give a breakdown on nationality, analysts and developers say Chinese mainlanders are the biggest buyers.

"From the non-local pool, Chinese mainland buyers certainly played a starring role," said Ryan Lam, Hong Kong-based head of research at Shanghai Commercial Bank Ltd.