Up, up and away: Hong Kong residential flat prices rise on aggressive financing
New projects greeted by massive oversubscriptions and sold-out responses despite bleak local economic outlook
Senior analysts have warned frothy prices may have re-emerged in Hong Kong’s residential market as new projects released for sale on Saturday saw massive over-subscriptions and sold-out responses from local flat buyers.
Experts warn buyers may be in the market purely driven by aggressive financing deals offered by property developers. But they are doing so with little regard for future interest rates adjustments while the outlook for the local economy is still poor.
Among the key residential projects over the weekend: Sun Hung Kai sold the entire stock of its Grand Yoho project in Yuen Long, even after adjusting its asking prices up by 20 per cent to a level of HK$15,000 per square foot since the project debuted in the market one month ago.
Joseph Tsang, head of capital markets at property consultancy JLL, described prices as “not cheap”.
“The prices are getting quite toppy,” he said. “The demand is huge.”
“It goes to show there really are many buyers in the market who want to purchase property, even when the property market is supposedly still under the shadow of a rising rates threat in the second half of the year and the economy is no better,” he added. “Hongkongers just don’t feel it’s a huge issue. That’s why they are back in the market.”
