Hong Kong property deals slump to 7-month low, but things are looking up for October
“Major developers have been preparing to launch projects to capture the pent up demand following the interest rate cut,” said Eddie Kwok, the executive director for valuation and advisory services at CBRE Hong Kong. “At the current high inventory level, developers are still likely to prioritise competitive pricing where we foresee primary sales transactions to rebound in coming months.”
Sales of new and lived-in homes, offices, shops, car parks and industrial spaces dropped 18.7 per cent to 3,843 units in September, from 4,729 in August, according to data from the Land Registry. It is the lowest tally since February, when restrictions on property buying were still in place.
Total sales value fell by about a fifth to HK$27.7 billion (US$3.57 billion) from HK$34.3 billion in August, also the lowest point since February. And home sales fell 22 per cent to 2,848 units in September from a month earlier.
For example, on a HK$5 million loan over 30 years priced at prime minus 1.75 per cent, a reduction lowers the mortgage rate to 3.875 per cent, meaning the monthly payment drops by HK$720 to HK$23,512, according to mReferral, a local mortgage broker.
