Hong Kong’s home buying sentiment upbeat as Nan Fung sells over 80 per cent of units at LP10 project in Lohas Park

Nan Fung Group and MTR Corporation sold 150 of the 179 flats at the LP10 project at Lohas Park in Tseung Kwan O on Friday

Sales of newly completed homes in the city reached 1,700 units in September, 40 per cent higher compared with August, Centaline data shows

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An aerial view of the LP10 residential project in Lohas Park, Tseung Kwan O, pictured on February 17, 2021. Photo: Martin Chan

Published: 7:15pm, 1 Oct 2021Updated: 10:29pm, 1 Oct 2021

Hong Kong’s homebuyers piled into the property market on the National Day holiday, snapping up more than 80 per cent of the flats on offer, encouraged by an improving local economy.

Market observers said buyers were rushing into the market to get ahead of rising prices and potentially higher mortgage rates, as the Hong Kong Monetary Authority was likely to raise interest rates in lockstep with the US Federal Reserve’s tapering measures, which may come sooner than anticipated.

Nan Fung Group and MTR Corporation sold 150 of the 179 flats at the LP10 project at Lohas Park in Tseung Kwan O on Friday, after receiving more than 645 registrations of interest, or some 3.5 bids for each flat, according to sales agents.

“The sentiment in the housing market now is robust because the city’s economy is recovering,” said Derek Chan, head of research at Ricacorp Properties. Many buyers, who were waiting on the sidelines last year, were entering the market, fearing that they may not able to afford homes if prices continue to rise, he added.

Hong Kong’s unemployment rate fell in August to its lowest level since the coronavirus pandemic began, with the economy buoyed by the government’s multibillion-dollar e-voucher scheme. The latest official figures show that the city’s jobless rate dropped to 4.7 per cent for the three-month period ending in August, the lowest since early 2020.

Hong Kong’s lived-in home prices hovered near a historical high in August after breaking a record in July that stood for nearly two years.