Hong Kong property: Chinachem’s Echo House in Cheung Sha Wan a hit with buyers

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Hong Kong property: Chinachem’s Echo House in Cheung Sha Wan a hit with buyers

Chinachem Group and the Urban Renewal Authority sold out all flats in Echo House on Sunday, the latest project to receive a warm reception from homebuyers following an easing of mortgage financing and a cut in interest rates.

All 198 units in the Cheung Sha Wan project were sold after sales started at 9am, according to agents.

Hong Kong’s property market has seen rising home sales in recent weeks following the policy-easing cycle by the Hong Kong Monetary Authority (HKMA) last month. This was followed by the HKMA increasing the loan-to-value ratio to as much as 70 per cent of the property’s value and raising the debt-servicing ratio from 40 per cent to 50 per cent for both residential and non-residential properties.

These positive developments have reinvigorated the market, said Sammy Po Siu-ming, CEO of Midland Realty’s residential division. “New projects continue to dominate the market.”

With developers actively launching new projects, Po estimates new home sales this month will cross 3,000 units, the most since April. Sales of lived-in homes are also expected to rise by about 15 per cent month on month to nearly 3,400.

“Property prices are likely to rebound in the fourth quarter by about 3 per cent,” he said.