Rate cut expected to boost buying
Hong Kong property agents are upbeat that the 0.25 percentage point interest rate cut by local lenders, tracking the reduction in the US, will encourage more people to buy property in the booming market.
The optimism comes in the wake of an upturn in the property market in September helped by a booming economy and rising salaries, said Colliers International head of research Simon Lo Wing-fai.
He believes yesterday's rate cut will encourage more purchases, although the impact on the property market would be limited as the increase in the number of transactions and prices would be modest.
'People will only save tens of dollars following the rate cut and the mortgage rate may not be cut further in near future. The rise in salaries and booming economy have had a greater impact on the market compared with the rate cut,' he said.
Centaline (Group) chairman Shih Wing-ching said he expected more people to pay more attention to interest rates.