Business
Hong Kong Property Market Sees Revival: Policy Changes and Robust Home Sales Bolster Confidence, Say Analysts
Analysts suggest that Hong Kong has the capacity to delve further into its policy resources to rejuvenate its real estate market. Strong house sales from the first weekend after stimulus measures imply that recent adjustments are starting to instill confidence in the market.
CK Asset Holdings and MTR Corp have reportedly managed to sell over 80% of the 248 apartments available in their Blue Coast II development in Wong Chuk Hang by early Sunday, as per real estate brokers. Furthermore, Sun Hung Kai Properties has supposedly secured buyers for 215 out of the 256 apartments being sold at Cullinan Sky Phase 2 in Kai Tak, they approximated.
Earlier launched projects also saw robust activity, with 39 units in developments like Koko Mare, Belgravia Place, and Henley Park being sold on Saturday. As the number of primary deals has already crossed 400 this weekend, the sales of new homes this month are expected to surpass September's total of 515 transactions.
Last month, financial institutions in Hong Kong reduced their main lending rate by 0.25%, in response to the initial loosening action by the Federal Reserve in the current policy phase. Additionally, the government has relaxed mortgage regulations to those seen before 2009, implementing a more robust measure to halt a three-year decline in the domestic real estate market.
"It will take a while for the effects of the eased mortgage restrictions to show up" in the sector, according to Buggle Lau Ka-fai, the lead analyst at Midland Realty. "The government has alternative strategies at its disposal [to revive the market], but the crucial task is to stimulate the economy," he added.
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