Everything about Landscope Christie's International Real Estate and the Hong Kong luxury property market
Economic figures have firmed up confidence that rate rise has come to a stop. The threat of a continued rate hike subsided. In Hong Kong. international hot money continued to pour in, leading to a low Hibor, Loan demand remained low. Some banks are now considering lowering their prime rates to fall in line with the HSBC group.
Despite strong economic activities, demand for capital remains weak. As banks are struggling to grab business in the lackluster mortgage market, more incentives are offered to property buyers. In addition to reducing mortgage rate to prime-3.2% (effectively 5.0% to 5.05% p.a.), tenure is extended and valuations are more aggressive.
Primary market has benefited from the improved market sentiments and aggressive lending policies. Many new developments on offer in August had recorded good sales, outperforming the first half year. However, this had come at a price, a slashed price across the board. The luxury property market was on the other hand largely a secondary market, as there was literally no new supply recently. Sales were slow in summer, as many wealthy families were holidaying. Starting September, there are signs of a revived sales market on the back of rate stabilization and the execution of investment plans.
The leasing market had been slower compared to June and July, as the peak of new lettings and new arrivals was over. This notwithstanding, we expect the leasing market to maintain a reasonably high level of activities due to corporate expansions.
By Annette Young