Developers face sales slowdown

Developers planning to sell off their projects in the next two months face a challenge as concerns grow over rising interest rates.

Property agents said developers would have to provide aggressive and competitive mortgage payment plans to lure cautious home seekers.

The market will see the relaunch of several upmarket residential projects during the next two months.

These include Sun Hung Kai Properties' The Arch at Kowloon Station and Cheung Kong (Holdings') The Legend in Tin Hau.

Pacific Century Premium Developments executive director Wendy Gan Kim-see said a small portion of the 29 houses in Residence Bel-Air was scheduled for launch in the second half of the year.

Kerry Properties will launch a luxury development in Ho Man Tin.

Hong Kong Monetary Authority chief executive Joseph Yam Chi-kong said last week that hopes for an end to interest rate rises were wishful thinking.

His remarks were made on the same day that Hong Kong's prime lending rate rose to a five-year high, as most banks matched the increase of 25 basis points set by the United States Federal Reserve.

Midland Realty chief analyst Buggle Lau Ka-fai said: 'Would-be homebuyers have raised fresh concerns over interest rates after the chief of the Hong Kong Monetary Authority's comment.'