The property market in Hong Kong saw a rise in transactions as all additional stamp duties were removed on Wednesday, within efforts by authorities to revitalise the market.

Property prices in Hong Kong plummeted 20% from their 2021 high, impacted by the pandemic, rate hikes and a mass departure of citizens set off by Beijing's enforcement of the national security law.

The removal of the additional stamp duties reverses a government drive over the last decade to cool property prices

On Wednesday, Hong Kong registered 28 transactions within the new home market, compared to 14 on Tuesday and a daily average of between four and five last week, Reuters reports.

The secondary market also recorded a 50% rise from Tuesday.

In addition, real estate agents said sellers were becoming increasingly bullish, with some hiking their asking price by 3-5%.

"We see the market is reacting positively," Sammy Po, the residential CEO of Midland Realty, told Reuters news agency.

"Buyer confidence has generally improved and they have speeded up their entry into the market."

More second homebuyers, foreigners and investors could also be attracted by Hong Kong's latest move, as they are no longer required to pay as much as 15% of additional stamp duties.

Furthermore, on Wednesday the city's de facto central bank increased the maximum amount homebuyers can borrow to 70% from a previous 50-60%, and for investors from 50% to 60%.

"It's a 180-degree change. People who were not interested in the property market are now also interested," said Louis Chan, vice chairman of Centaline Property Agency.

House prices in the city soared 200% in the decade to 2021, exacerbating one of the most unaffordable markets in the world.

Over the last two years, housing transaction volumes fell 30% as an increasing number of residents opted to rent, with market observers stressing the importance of additional sales in order for prices to stabilise.