Average property prices in the secondary market might edge closer to the 1997 peak this year as borrowing costs continue to decline, Centaline Property Agency said yesterday.
The agency adjusted its expectations upward after the United States Federal Reserve on Tuesday cut interest rates 75 basis points. Hong Kong banks matched that yesterday, bringing mortgage rates to about 3.1 per cent, less than inflation.
According to the Centa-City Index, which covers sales at 45 of Hong Kong's private housing estates, average prices are only 67 per cent of 1997.
Willy Liu Wai-keung, a managing director at Ricacorp Properties, expected transactions would increase after the Lunar New Year.
'The average property prices of 50 major housing estates rose 3.5 per cent in the first half of this month,' he said. 'We expect property prices will go up 30 per cent this year.'
Ken Lee Yuk-cheung, senior sales manager at Centaline in Tseung Kwan O, yesterday said about 250 people had made appointments to view flats this weekend, 10 per cent more than a week ago.