Emboldened by a drop in mortgage rates, Hong Kong homebuyers purchased all 216 new units offered at Sun Hung Kai Properties’ Sierra Sea development in Sai Sha, New Territories, within six hours of the sale opening on Saturday. An additional 25 units remain available through tender.
The rapid sales come as the one-month Hong Kong interbank offered rate (Hibor), closely tied to mortgage loans, recently fell below 1 percent for the first time since July 2022, closing at 0.58964 on Friday, according to the Hong Kong Association of Banks. Derek Chan, head of research at Ricacorp Properties, noted that the lower Hibor has eased mortgage burdens for buyers.
This decline in Hibor is largely attributed to increased liquidity in the city’s capital markets, following intervention by the Hong Kong Monetary Authority (HKMA) in the currency market. Since pegging the Hong Kong dollar to the US dollar in 1983, the HKMA maintains a trading band between HK$7.75 and HK$7.85 per US dollar, stepping in to stabilize the currency when needed. The recent tariff truce between the US and China has further boosted buyer confidence in the property sector.
New property launches have featured lower prices, some qualifying for the HK$100 stamp duty concession on homes priced under HK$4 million, which has maintained strong buying interest, Chan added.
The Sierra Sea project, a large-scale development with 9,700 units situated between Sai Kung and Ma On Shan, offered flats ranging from 302 to 807 square feet, with prices starting at HK$3.26 million (US$416,000) and reaching HK$11.02 million after discounts.
Since launching its first batch in late April, Sierra Sea has sold over 1,300 units, including tender sales. With the latest batch sold out, total sales at the project have reached approximately 1,520 units, according to a Sun Hung Kai spokeswoman.
Sammy Po Siu-ming, chief executive of Midland Realty’s residential division, expects the strong sales momentum to persist. So far in May, about 1,590 new homes have sold, more than twice the number recorded in April. Louis Chan Wing-kit, CEO of Centaline Property Agency, anticipates total new home sales to hit 2,500 for the month, surpassing April’s 1,599 transactions.
On Saturday, a Midland buyer paid HK$12 million for both a two-bedroom and a one-bedroom unit in Sierra Sea, intending to use one for living and rent out the other.
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