Hong Kong-based luxury property transactions saw a 42 per cent rise in 2010 in a sign that markets are gaining confidence following the 2008 global financial crisis, new research by the real estate agency Centaline Property reveals.

According to the study, the value of luxury properties valued at over HK$10 million totalled HK$196.67 billion last year, beating the HK$173.8 billion posted during the 1997 property boom, or just a year after the government began issuing electronic property transaction data in 1996.

The number of luxury apartment transactions went up 33 per cent to 8,642, a 13-year peak since 1997, when it totalled 9,532.

In the secondary market, however, the agency said that private housing will likely drop from 110,000 cases in 2010 to about 90,000 this year as the government begins keeping a close watch on the market's activities. With Hong Kong being home to some of the most expensive pieces of real estate in the world, the International Monetary Fund has been urging the local authorities to monitor speculative buying.

The study also noted that a big chunk of the city's property clientele are wealthy Mainland Chinese looking to build investment at locations closer to home.