Business
Hong Kong Property Market Experiences 7-Month Low, Anticipates Resurgence with Upcoming Developer Projects
Hong Kong's property transactions plummet to a 7-month nadir, however, prospects for October seem promising. The purchase of new and previously occupied homes, offices, retail outlets, parking lots, and industrial areas declined by 18.7 per cent, falling to 3,843 units in September.
"Top developers are gearing up to kick off initiatives to seize the held back demand in response to the cut in interest rates," stated Eddie Kwok, the Director of Valuation and Advisory Services at CBRE Hong Kong. "With the current heightened stock levels, developers will most likely continue to favor competitive pricing, predicting a resurgence in primary sales transactions in the near future."
The Land Registry data shows that the sales of brand-new and previously owned homes, commercial offices, retail spaces, parking lots, and industrial properties fell by 18.7 per cent, decreasing to 3,843 units in September from 4,729 in August. This is the lowest count since February, during a time when limitations on property acquisitions were still enforced.
The overall value of sales experienced a significant drop, approximately 20%, plummeting to HK$27.7 billion (US$3.57 billion) from HK$34.3 billion in August, hitting its lowest level since February. Similarly, residential property sales saw a decrease of 22% with 2,848 units sold in September, down from the previous month.
For instance, a 30-year loan of HK$5 million with an interest rate of prime minus 1.75 per cent, would see a decrease in the mortgage rate to 3.875 per cent if there's a reduction. This would result in a monthly payment decrease of HK$720, bringing it down to HK$23,512, as stated by mReferral, a domestic mortgage broker.
Discover more from Automobilnews News - The first AI News Portal world wide
Subscribe to get the latest posts sent to your email.