上述皇后大道東269號住宅地，地盤面積約1.32萬方呎，涉及可建總樓面約11.62萬方呎。該地毗鄰私樓慧賢軒、灣仔分科診所，並面向賽馬會公園，距離港鐵灣仔站約10分鐘步程，附近社區配套設施充足。該地將於下周五 (20日) 招標，並於6月17日截標。
Investors rush to buy in first-weekend property sales despite biggest base rate rise in 22 years
Kerry Properties sold 57 of its 60 one-bedroom units on offer at the residential project at 10 LaSalle development in Ho Man Tin by Saturday afternoon
The Hong Kong Monetary Authority followed the US Fed with a base rate rise, but mortgage rates remain at about 2 per cent
Investors rushed to get ahead of the rising interest rate cycle by snapping up new flats in a first-weekend property sale after the biggest interest rate rise in 22 years by the Hong Kong Monetary Authority (HKMA) earlier this month.
By 6pm on Saturday, 66 units of the 88 units made available across two separate projects had been bought, according to property agents. The strong demand suggests higher interest rates have not hurt property market sentiment.
Kerry Properties sold 57 of its 60 one-bedroom units on offer at the residential project at 10 LaSalle development in Ho Man Tin. Property agents expect it can sell out most or all by the end of the day.
Offer prices for the units, which are between 319 to 409 sq ft, range from HK$7.38 million (US$940,000) to HK$10.99 million. The average price stood at HK$24,258 per square foot after discounts offered by the developers.
“The increase of the US Fed rate and HKMA base rate is well expected and they are not a surprise to the market. The homebuyers have well prepared to pay more for their mortgage loans in coming years,” a property agent said.
“The strong response to the weekend sales is due to the fact that were almost no new flat sales in the first quarter, while the homebuyers return to the market when developers launch a new project,” the agent added. The agent also noted that investors may believe the political situation has become more stable with the election last Sunday of John Lee as the city’s next chief executive.
Hong Kong’s cost of money soared by the most in 22 years as the city’s de facto central bank followed the US Federal Reserve to increase the base lending rate by 50 basis points to 1.25 per cent. That marked the biggest one-time increase in Fed rates since 2000.
Hong Kong’s base rate is expected to rise to 4 per cent by the end of 2023.
“The property sentiment has not yet changed with the interest rate rise,” another agent said, adding that the commercial mortgage interest rate has not yet risen. Most mortgage rates are now at about 2 per cent.
“Even if the interbank rate or prime lending rate will increase later this year, it is not going to be substantial,” the agent said. “People can still afford to pay their mortgage loans with the expected rate rise. The property outlook for the Hong Kong market remains positive.”
Some homebuyers are rushing to buy now in anticipation of further rate increases, according to a surveyor. “They fear they may not be able to pass the stress test requirement next year and hence will not be able to get a mortgage loan,” the surveyor said.
Hong Kong’s stress test requires all new mortgage borrowers to prove their income is high enough to withstand interest rate increases of up to 3 percentage points from the time of their application.
“Many customers may be able to pass the stress test now amid a low-interest-rate environment, but they may not be able to pass the threshold next year,” the surveyor said. “Developers would also like to launch the projects to sell now before the rate rises. As such, we are going to see a lot more new flat transactions in the coming months.”
The Kerry Properties’ project located at 10 La Salle Road, Kowloon, is a traditional low-density luxury residential area famous for its nearby prestigious schools. The 10 LaSalle is a 17-storey building, providing 73 units in total. The other 12 three-bedroom units and one four-bedroom unit are sold via tender.
Ahead of the sale, 10 LaSalle received 900 registrations from interested buyers, meaning about 15 interested buyers were going after each of the 60 units on offer Saturday.
Separately, Henderson Land sold nine of 28 units on offer by 6pm on Saturday at the residential project The Quinn Square Mile in Tai Kok Tsui. The units are all one-bedroom flats and studios.
The cheapest unit measured 206 sq ft was offered at a price of HK$4.54 million, while the most expensive flat measured 320 sq ft for HK$7.21 million.
The developer had already sold 51 units of The Quinn Square Mile on May 1. The average price after discounts ranged from HK$20,971 to HK$24,353 per square foot.
A property agent said that The Quinn Square Mile units are left over, so the sale would be at a slower pace than other new projects. However, there are still some buyers interested in the project, especially younger ones.
The sale of property has bounced back this month after the fifth wave of Covid-19 subsided in the city. Hong Kong had no new flat sales in February and March, as the outbreak and social distancing measures linked to the city’s caused developers to delay new project launches.
The Quinn Square Mile, with 614 units in total, also featured two-bedroom flats, with the largest measuring 382 sq ft. The first-batch units were earmarked for sale at an average launch price of HK$23,928 per square foot after discounts offered by the developer.
(South China Morning Post)