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Sandy Li

Buyers remain scarce but more people are spending their weekend flat hunting following last week's interest-rate cut, according to an estate agents' survey.

Fortune Realty and Ricacorp Properties found a 10 per cent increase in flat viewings at 20 major housing estates last weekend.

The latest rate cut brought the effective mortgage rate down to 4.5 per cent, as most banks are offering 2.5 percentage points below prime.

Transaction volume was slightly boosted by the interest-rate cut, but agents said home prices remained unchanged.

Fortune Realty said the number of visitors viewing second-hand flats rose by between 10 per cent and 30 per cent compared with the previous weekend.

Kingswood Villas in Tin Shui Wai was the most popular residential project during the survey weekend, followed by Taikoo Shing in Quarry Bay, East Point City in Tseung Kwan O and Discovery Park in Tsuen Wan, Fortune Realty said.

Ricacorp Properties East Kowloon area manager Ma Po-shing attributed the increased interest to the fact that funding a mortgage was now cheaper than renting. Monthly mortgage instalments had fallen to about HK$6,400 for every HK$1 million home loan from banks.

Buying interest was also bolstered because flat prices were seen as hitting attractive levels and unlikely to have another significant drop.

Mr Ma said transaction volume rose by between 10 per cent and 20 per cent in major housing estates such as Laguna City in Cha Kwo Ling and Sceneway Garden at Lam Tin MTR station.

But he said home prices remained flat and some homeowners were still willing to cut prices by about 1 per cent to 2 per cent to lure buyers.

The secondary market in Tuen Mun had been adversely affected by two developers offering new projects at discounted prices plus sweeteners.

Ricacorp Properties said buying was cheaper than renting in 60 per cent of units in major estates after the latest round of interest-rate cuts.

Fortune Realty said most potential home buyers were first-time purchasers or those who had secured government Home Starter Loans.



Rate cuts draw out flat-hunters but buyers still thin on ground