(Bloomberg) -- Hong Kong’s new home transactions hit an 11-year high in March, an encouraging sign for the beaten-down property market after the government lifted cooling measures.

There were close to 4,200 sales in the period, more than 14 times the figures from the prior month, according to real estate agent Midland Realty. 

This comes after Hong Kong authorities scrapped property curbs in late February to revive the sector. Developers are counting on the pickup in sales to reduce excess inventories that are keeping a lid on prices.

“We think that the strong sentiment for firsthand transactions should extend into April,” said Sammy Po, chief executive of Midland Realty’s residential division for Hong Kong. “Even if non-Hong Kong buyers are asking for lower prices, they are showing a much higher level of interest to purchase a property.”

Part of the reason for the climb could be the launch of several new projects, including Wheelock Properties Ltd.’s Seasons Place and Henderson Land Development Co.’s Belgravia Place. Both have recorded strong results.

Over the long weekend, CK Asset Holdings Ltd. released more units of its Blue Coast development on the southside of Hong Kong Island, attracting 50 times more bidders than available apartments. It launched more units on Tuesday.

Blue Coast is “very affordable,” and the developer is very confident about sales, Executive Director Justin Chiu said at a news briefing. Agent data has indicated that more than a third of the bidders are from mainland China, although final results have yet to be determined ahead of the ballot to be drawn on Saturday, he added.

CK Asset expects to reap HK$8.8 billion ($1.1 billion) from the sale of 422 units in total. 

Read: HK Homebuyers Flock to CK Asset’s Southside Project on Discounts

Still, Hong Kong’s residential market may continue to weaken this year, with UBS Group AG expecting values to decline 5%. Buyers’ interest in new homes are also set to add pressure on prices in the secondary market. 

(Updates with details of Blue Coast sale from seventh paragraph)

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