Homebuyers in Hong Kong braved a storm signal to attend the city's inaugural property sales following a rate cut
In a significant development, Ricacorp Properties has predicted that the upcoming interest rate reductions will mark the beginning of a downwards interest rate cycle. This announcement comes from Derek Chan, head of research at Ricacorp Properties, who anticipates two additional rate reductions in the coming months.
This potential shift in lending costs could prove beneficial for buyers in the market, as a downwards interest rate cycle may incentivize more buyers to position themselves in the property market. The statement from Ricacorp Properties suggests that the anticipated rate reductions may incentivize more buyers to enter the market.
Meanwhile, CK Asset, a company under Li Ka-shing, has found five buyers for the last 70 units of Blue Coast II in Wong Chuk Hang. The property units, priced between HK$10.2 million and HK$20.2 million, saw 32 of them sold by tender. The average price per sq ft of the units, after discounts, is HK$22,684.
Interestingly, there are no available search results containing the names of the five buyers of the last 70 apartments of Blue Coast II sold by CK Asset between January 1, 2023, and June 30, 2023.
It's worth noting that CK Asset Holdings is one of the flagship companies of tycoon Li Ka-shing. On the other hand, the property development company responsible for Blue Coast II is New World Development.
The property market is expected to experience a downwards cycle for lending costs, a trend that is expected to be stabilized by the government measures following Chief Executive John Lee Ka-chiu's policy address.
This downwards interest rate cycle, as mentioned by Ricacorp Properties, may be beneficial for buyers in the market, providing an opportunity for potential homeowners to secure properties at potentially lower costs. However, it's essential to keep a close eye on market trends and consult with financial advisors before making any significant decisions.
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