Hong Kong property deals surge to their highest since August as stable interest rates lure buyers
- Hong Kong property transactions post third straight monthly rise, as confidence boosted by stable funding costs and the government’s migration programme
- Experts say that buying activity indicates buyers’ expectations that interest rates have peaked and some are buying in anticipation of interest rate cuts
Total sales value, meanwhile, edged up 0.3 per cent to HK$33.67 billion (US$4.3 billion) in the same period, the data showed.
The surge comes amid the US Federal Reserve’s decision to hold interest rates steady on Thursday morning, the fifth time since September.
It was Hong Kong’s third straight monthly rise, as buyers’ confidence was lifted by the stable funding costs and the government’s migration programme, which allows eligible persons to pursue residency in Hong Kong through capital investment in the form of financial assets.
“Interest rates have peaked and the impact on the property market will further be reflected in the registration of property deals at the end of February and March,” said Yeung Ming-yee, senior associate director at Centaline Property Agency.
“It shows that interest rates have peaked and in anticipation of interest rate cuts, some buyers have taken advantage of the low price to enter the market and second-hand transactions have returned to the 2,000 level,” he added.