Last week's 25 basis point cut in prime lending rates - the second reduction in nine days - gave a further shot in the arm to the already vibrant residential market with major housing estates registering more sales growth.
The number of deals done in the secondary market has now been on the rise for the 11th consecutive week and agents are also reporting a jump in weekend sales on the primary market.
Secondary-market transactions in the 35 key housing estates monitored by Midland Realty edged up to 516 units last week from 512 previously.
'The rate cut definitely helped to boost buying desire,' said Jack Ho Kam-ming, assistant sales manager for West Kowloon at Midland Realty.
Big home mortgage lenders HSBC, Hang Seng Bank and Bank of China (Hong Kong) last week all said they would cut their prime lending rates to 7 per cent, the lowest in two years. Standard Chartered, Bank of East Asia and Dah Sing Bank have reduced their prime rates to 7.25 per cent.
For HSBC mortgage customers, the cut will mean repayments on a home loan of HK$2 million over 20 years will be lowered by about HK$267 a month excluding cash rebates which amounts to a saving of about HK$64,000 over the full term of the loan.
