Hong Kong can dig deeper into policy toolbox to revive property market: analysts

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Robust home sales from first post-stimulus weekend suggest recent tweaks are beginning to inject confidence in the market

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Notices in Mong Kok encouraging buyers to take advantage of new property support measures in the 2024 policy address. Photo: Elson Li

Cheryl Arcibal

Published: 8:30am, 21 Oct 2024Updated: 8:54am, 21 Oct 2024

Judging by the robust post-stimulus home sales in Hong Kong over the weekend, analysts agree higher loan financing and cheaper borrowing costs have helped lift buying sentiment. The government can certainly dig deeper into its toolbox for reinforcement, if needed.

CK Asset Holdings and MTR Corp sold more than 80 per cent of the 248 flats on offer at their Blue Coast II project in Wong Chuk Hang as of early Sunday, according to property agents. Sun Hung Kai Properties found buyers for 215 of the 256 flats on sale at Cullinan Sky Phase 2 in Kai Tak, they estimated.

Other previously-launched developments also recorded brisk business, including 39 units in projects such as Koko Mare, Belgravia Place and Henley Park on Saturday. With primary transactions already exceeding 400 this weekend, new home sales this month are set to surpass the 515 transactions in September.

Banks in Hong Kong cut their prime lending rate by a quarter point last month, following the first easing move by the Federal Reserve in this policy cycle. The government has also eased mortgage rules to pre-2009 levels, delivering a stronger pill to stop a three-year rot in the local property market.

Prospective buyers swamp Blue Coast ll sales office at Fortune Metropolis in Hung Hom on October 19 2024. Photo: Jonathan Wong

“The impact from the mortgage relaxation measures will take time to be reflected” in the industry, said Buggle Lau Ka-fai, chief analyst at Midland Realty. “If the government wants, there are some other measures [to rescue the market]. But the most important thing is to boost the economy.”