HK Developers Rush to Sell Homes Amid Fed Rate Cuts | HK Weekend Property Market Recap

The US Federal Reserve has cut interest rates by 25 basis points to a range of 4.25% to 4.5%, boosting developers’ confidence to clear unsold inventory. Following this, HSBC Hong Kong announced that starting Friday, December 20, it will lower its Hong Kong dollar prime rate by 12.5 basis points, bringing it down from 5.375% to 5.25%-- the second adjustment since November. Meanwhile, the Mori project in Tuen Mun project is set to release nearly 100 new units. How strongly will the market respond to its latest price list?

With this incentive, the lowest discounted prices range from HK$2.87 million to HK$6.72 million, or HK$8,300 to around HK$10,500 per square foot, making it comparable to second-hand homes in the area, which are priced between HK$7,500 and HK$11,000 per square foot.

In the previous sales phase, 97% of buyers, involved in 67 transactions total, opted for this discount scheme.

For instance, a 586 square foot two-bedroom unit in the new price list is only 0.8% more expensive than the same layout on a lower floor in the earlier phase. After accounting for price differences between units on different floors, the overall pricing remains largely unchanged. With the project now fully completed, strong sales are expected in the upcoming phase.

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