Hongkongers snub second property sale in as many days, as MTR’s South Land becomes looming Fed rate hike’s latest victim

South Land, a project developed by RK Properties and MTR Corporation in Wong Chuk Hang, fails to sell a single unit two days before expected Fed rate hike

Only two out of 139 units were sold at Miami Quay in Kai Tak on Sunday

Reading Time:3 minutes

Southland is the first project to sit atop a major subway station in about three decades. Photo: Handout

Published: 9:00pm, 20 Sep 2022Updated: 9:09pm, 20 Sep 2022

Hongkongers appeared to have been spooked by a looming increase in interest rates, as they snubbed another property sale in the space of two days.

As of 8pm on Tuesday, not a single unit had been sold out of the 139 flats on sale at South Land, a project developed by RK Properties and MTR Corporation in Wong Chuk Hang in Aberdeen, according to agents.

The sale came two days before a meeting of the US Federal Reserve, which is likely to increase interest rates by a further 75 basis points. With the Hong Kong dollar pegged to the US dollar, the Fed rate increase is expected to push Hong Kong’s commercial banks to increase their prime rates this month for the first time in four years.

“Everyone is waiting to see by how much the Fed is going to increase its interest rates. People are more cautious and are taking a wait-and-see approach,” said Sammy Po, CEO of Midland Realty’s residential division for Hong Kong and Macau. “Many homebuyers are still undecided, which is why transaction volumes are relatively poor.”

This is the second time in two days that Hong Kong developers have seen poor sales amid rising interest rates and an economy hobbled by coronavirus restrictions. On Sunday, only two units had sold out of the 139 on sale at Miami Quay in Kai Tak, the site of Hong Kong’s former airport.

Moreover, an announcement by John Lee Ka-chiu, Hong Kong’s leader, on Tuesday that his administration would create “maximum room” to reconnect the city with the world – which is being viewed as the strongest sign yet that hotel quarantine requirements for international arrivals will be scrapped soon – appeared to have done little to boost optimism among buyers.

Select Voice

Choose your listening speed

Get through articles 2x faster

1.25x

250 WPM

Slow

Average

Fast

00:0000:00

1.25x