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Cheryl Arcibal

Hong Kong developers have already sold all of the more than 290 new flats they launched over the weekend, as buyers look to lock in mortgages ahead of an anticipated rise in interest rates later this year, according to property agents.
The decision by the city’s major banks to hold rates steady despite the US Federal Reserve’s recent rate increase appeared to have given buyers a push, with many expecting local rates to rise in the coming months, said Derek Chan Hoi-chiu, head of research at Ricacorp Properties.
“A notable number of home seekers are actively entering the market to secure properties ahead of anticipated local rate increases,” Chan said.
On Saturday, Chow Tai Fook-owned Sky Ace Enterprises shifted all of the 140 apartments it made available on its State Residence project in North Point, agents said.
The properties are a mix of one-bedroom to three-bedroom flats with between 28 square metres (301 square feet) and 56 square metres (603 square feet) of floor space. They were offered at discounted prices starting from HK$5.96 million (US$759,770).
China Land Resources, meanwhile, found buyers for all 153 apartments at The Sterling II made available on Sunday via a price list, agents said. The flats – ranging from 28.5 square metres (307 square feet) to 67.8 square metres (730 square feet) – were also offered at discounted prices of HK$5.43 million to HK$15.01 million.
The Southwest Kowloon project also offered 35 flats via tender starting Sunday.
“Developers are likely to push out launches quicker to avoid interest hike uncertainty,” said Norry Lee, senior director of projects strategy and consultancy at JLL in Hong Kong.
The latest sales performance is likely to provide some relief to the property market, after Hong Kong’s lived-in home prices fell 0.46 per cent in July, halting a 13-month upswing, according to the latest official data.
Despite potential upside risks in US interest rates and the likelihood of Hong Kong following suit, prevailing market optimism continues to support transaction activity
Derek Chan Hoi-chiu, Ricacorp Properties
The index tracking second-hand home prices slipped to 321.5 in July from 323 in June, the first decline recorded in 16 months, Rating and Valuation Department data showed.
The decline came weeks before the recent interest rate increase.
On September 17, the Hong Kong Monetary Authority lifted the city’s base rate to 4.25 per cent after the US Fed raised its target range to between 3.75 per cent and 4 per cent following its latest Federal Open Market Committee meeting.
The city’s three note-issuing banks did not follow suit. HSBC and Bank of China (Hong Kong) kept their prime lending rate at 5 per cent, while Standard Chartered maintained its prime rate at 5.25 per cent, according to separate statements from the lenders.
The Fed is set to meet again in late October. If it raises its target rate again, that could finally trigger Hong Kong’s lenders to adjust their own rates, analysts said.
“Despite potential upside risks in US interest rates and the likelihood of Hong Kong following suit, prevailing market optimism continues to support transaction activity,” Chan of Ricacorp said.
The timing of the launches also had a positive impact on the sales, according to Lee of JLL.
“Timing matters: with Mid-Autumn Festival this week and the National Day ‘golden week’ next week, developers are keen to catch this window for mainland buyers,” he said.


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All of the nearly 300 new flats launched by Hong Kong developers over the weekend have already sold, as buyers look to buy before rates increase


All of the nearly 300 new flats launched by Hong Kong developers over the weekend have already sold, as buyers look to buy before rates increase.


Buyers snap up new Hong Kong flats ahead of likely interest rate rises

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}All of the nearly 300 new flats launched by Hong Kong developers over the weekend have already sold, as buyers look to buy before rates increase

All of the nearly 300 new flats launched by Hong Kong developers over the weekend have already sold, as buyers look to buy before rates increase