The Real Deal National

As protests in Hong Kong rage on, a trade war truce with US gives boost to home sales

Local agents expect developers to nix incentives
July 07, 2019 03:00PM

(Credit: iStock)

(Credit: iStock)

While major street protests rage on in Hong Kong, the city’s residential sales market got a boost from other geopolitical movements.

The city saw its third biggest weekend of sales last week, with local agents attributing the activity to President Donald Trump and Chinese President Xi Jinping’s agreement to resume trade negotiations, according to the South China Morning Post.

Developer Wheelock Properties saw about 90 percent of the flats at the 504-unit Grand Montara development in Tsueng Kwan O, a town in Hong Kong, sold by last Saturday evening. The developer received 7,800 bids for the 504 units, or about 15 offers per flat. An earlier phase of the Grand Montara development sold out in June.

In the Hong Kong town of Tuen Mun, half of the 38 flats at the Mount Regency development have been sold by Sun Hung Kai Properties.

Buyers also were encouraged by the U.S. Federal Reserve’s move to hold interest rates steady. The easier monetary policy at the Fed allows the Hong Kong Monetary Authority to keep the value of the local currency pegged to the U.S. dollar, which would mean lower interest rates on mortgage loans for Hong Kong home purchases.

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“Overall, sentiments have strengthened,” said Louis Chan Wing-kit, vice chairman of Asia-Pacific at Centaline Property Agency.

This month, Chan expects developers to launch sales for more new residential projects and to stop discounting their prices. [SCMP] – Mike Seemuth