It was dismal business for Hong Kong’s two largest property agencies — Centaline and Midland — as both recorded only four transactions each at the city’s 10 major secondary residential estates over the first weekend of the Lunar New Year.
According to Centaline, it closed just four transactions during the period at Taikoo Shing in Taikoo, City One Shatin in Sha Tin, Locwood Court in Tin Shui Wai and Caribbean Coast in Tung Chung.
Local home prices have tumbled in line with slower global growth. The price correction could, ultimately, benefit the market’s long-term development given Hong Kong’s robust fundamentals
Angela Wong Ching-yi
executive director of Midland
Louis Chan Wing-kit — the company’s chief executive officer, residential — said the Chinese New Year holidays had almost brought the market to a standstill as residents went on holiday trips or kept themselves busy visiting relatives and friends.
Midland also registered four transactions — almost half of the number recorded a week earlier.
The Hong Kong dollar interest settlement rates — widely known as the Hong Kong Interbank Offered Rates — dropped to 0.99857 percent for its one month tenor on Monday, hitting a three-month low, while the overnight Hibor declined by 8.9 basis points in lockstep, and the three-month Hibor remained stable at around 1.7 percent recently.
Hibor is the local benchmark interest rate in relation to the commercial bank mortgage rate.
Chan said he expected the local property market to reenter its seasonal peak season after the holidays, with transactions in the secondary home market likely to rebound at a higher pace.
“Local home prices have tumbled in line with slower global growth,” explained Angela Wong Ching-yi, executive director of Midland, “The price correction could, ultimately, benefit the market’s long-term development given Hong Kong’s robust fundamentals.”
She’s optimistic about the city’s luxury residential market, noting the city’s advantages as a housing investment destination, such as high liquidity, a low tax rate and varied property types.
HONG KONG NEWS