The Fed might raise rates again | HK Weekend Property Market Recap

Last week, the US announced an annual Consumer Price Index increase of 3.5% surpassing market expectations. Some Fed officials indicated that they are not in a rush to cut interest rates tempering expectations for a rate cut in June. Former US Treasury Secretary Larry Summers even suggested that rate hikes could be on the horizon increasing uncertainty in the housing market.

Meanwhile, since Hong Kong’s full withdrawal of property cooling measures in February, the atmosphere in the property market has improved, sparking a flat sale battle among local developers. Sun Hung Kai Properties' latest development in Tseung Kwan O, Phase 12A of Seasons Place, sold over 85% of its units and the developer subsequently launched Phase 12B of its Park Seasons project.

The first batch of 138 units had an average price per square foot of about HK$14,400, about 2% higher than the previous phase, offering one to two-bedroom layouts. The discounted price of the flats ranges from about HK$4.54 million to HK$7.34 million, with discounted prices per square foot ranging from about HK$13,900 to HK$15,000.

Moving on, in the first half of April, there were about 980 transactions recorded, a slowdown compared to over 4,000 transactions in the entire previous month. This suggests that the effects of removing cooling measures are slowly waning.

Among these, the Blue Coast development, by CK Asset and the MTR, sold about 540 units within eight days, generating over HK$10 billion, making it this year's highest-selling new launch. The developers subsequently revised the price list for nine units, with price increases ranging from 2% to 10%.