Hong Kong buyers snap up 200 flats as market sentiment improves on interest rate cut
Hong Kong saw the most number of new flats sold on a single day since May as market sentiment improved after a rate cut by the HKMA
Sun Hung Kai Properties (SHKP) sold 112 units, or 93 per cent, of the 120 units at Yoho Hub II in Yuen Long as of 8pm, according to agents.
Meanwhile, Emperor International found buyers for all 85 units of One Jardine’s Lookout in Happy Valley in a similar time frame to SHKP.
“It is expected that the first round of units in the new developments of One Jardine’s Lookout in Happy Valley and The Yoho Hub II will sell out on the same day, driving Saturday’s primary market transactions to exceed 200,” said Sammy Po Siu-ming, chief executive of Midland Realty’s residential division.
Last week, the HKMA began a policy easing cycle by following the US Federal Reserve’s half-percentage point cut of its base interest rate, the first reduction in four years. Hong Kong’s de facto central bank adjusts its own policy based on what the Fed does to keep the local currency’s peg to the greenback.
The cut paved the way for Hong Kong’s commercial banks to trim their rates, which in turn would translate into savings for borrowers who tie their loans to prime rates.
