Sun Hung Kai Properties (SHKP) has dismissed the impact of an interest rate rise on the depressed housing market, instead predicting higher capital appreciation in the longer term. Vice-chairman Raymond Kwok Ping-luen said: 'Buying homes at a higher interest rate will also make money.' Property prices had come down by several percentage points in the past several weeks in anticipation of a rise in interest rates, he said. Therefore, buyers purchasing at lower prices now would enjoy a better capital value appreciation when interest rate eased later. Property prices would become more expensive as many people would take advantage of low interest rates to purchase homes, he said. Mr Kwok expected Hong Kong today would follow the United States move to raise interest rate by 50 basis points. SHKP yesterday released 18 units at Grand Pacific Views in Siu Lam for lease at between HK$23,000 and HK$30,000 per month. Cheung Kong executive director Katherine Hung Siu-lin said the rate rise was already within market expectations, and the impact on the housing market would be limited. The expected rate rise would be offset by banks' preferential mortgage packages, she said. Cheung Kong would stick to its local sales programme and it planned to release its residential project Costa Del Sol in Singapore for sale this month or early next month. Meanwhile, Henderson Land Development said it would release the remaining units at Parkland Villas in Tuen Mun and Metro City phase two development in Tseung Kwan O for sale tomorrow. Agents said prices for the 200 units were HK$2,400 per square foot to HK$2,500 per square foot, about five to 10 per cent lower than in the previous sale.