Hong Kong developers to hold biggest weekend property sale in six months in rush to beat rate rise
The sale also comes as Nomura joins a chorus of banks predicting a sharp fall in property prices ahead
Hong Kong property developers will put 597 new flats on the market between Friday and Sunday, the biggest weekend sale in six months, as competition to lock in buyers heats up before the era of cheap mortgages comes to an end.
The sale comes as brokerage Nomura became the latest to predict sharp falls in property prices in the city, the world’s least affordable housing market, seeing a 13 per cent drop next year as higher rates bite.
Interest rates are expected to rise by the end of the month, with Hong Kong set to follow an increase by the US Federal Reserve, a move that is likely to dampen demand.
“Buying interest will drop and more buyers will take a wait-and-see attitude when the prime rate rises,” said Lung Siu-fung, analyst at China Merchants Securities International. “Developers want to sell before the prime rate rises.”
Nan Fung Development said it would offer 487 flats at the LP6 project in Tseung Kwan O on Saturday, a day ahead of rival Sun Hung Kai Properties’ sale of 72 flats at Cullinan West II in Sham Shui Po on Sunday. Meanwhile, Wheelock Properties picked Friday for the sale of 38 units at its Monterey development in the same area.
