Hong Kong homebuyers adopt wait-and-see approach amid rising mortgage rates and higher unemployment
- Only 18 out of 328 homes, or 5.5 per cent of the total, offered at Manor Hill in Lohas Park, Tseung Kwan O and Prince Central in Prince Edward were sold on Saturday
- The relatively high pricing and less favoured units are causing potential buyers to take a wait-and-see attitude amid rising mortgage rates and a higher unemployment
Hong Kong homebuyers held back from buying at two new developments in the city on Saturday, as rising mortgage rates and higher unemployment continue to dampen consumer sentiment.
Only 18 out of 328 homes, or 5.5 per cent of the total, offered at Manor Hill in Lohas Park, Tseung Kwan O and Prince Central in Prince Edward were sold on Saturday as of 3.10pm local time, according to agents.
Ten were sold out of Kowloon Development’s 312 homes at Manor Hill, while eight transactions were completed at Sun Hung Kai Properties’ offering of 16 units at its Prince Central development.
The sluggish sales come as local mortgage rates are rising, after the city’s financial secretary Paul Chan Mo-po warned earlier this month that homebuyers would bear the brunt of possible rate hikes following the US Federal Reserve move.
“Sales were not that good as the price at Prince Central is not a low market price, while the units offered at Manor Hill are leftover ones [from previous sales],” said Sammy Po, CEO of Midland Realty’s residential division for Hong Kong and Macau.
Discounted prices for the flats at Manor Hill were HK$5.04 million (US$642,000) to HK$9.8 million, or HK$19,572 to HK$24,980 per square foot (sq ft). Average discounted prices were HK$22,885 per sq ft. Buyers are expected to be able to move in as soon as August.