A prospective half percentage point drop in Hong Kong's interest rates is expected to have a limited positive impact on the mass residential market.
Analysts said the market was still labouring under a glut of unsold units and a lack of confidence which was expected to block any big rise in transactions.
Local banks today are expected to lower interest rates by 50 basis points, following the United States' lead on Wednesday. This would see a total trim of 1 per cent within a month.
Midland Realty executive director Victor Cheung said the anticipated interest-rate cut would not provide any significant support to the property market as people still lacked confidence.
He said both home-purchasing and rental transactions had been sluggish in the past few months, indicating people were holding back their housing decisions.
With a rate cut, Mr Cheung expected this month's transaction volume would rebound to only about 5,000 to 6,000, compared with the 4,600 in January.
