Kerry Properties' Huang Guangyao: US rate cut in September is good news for the Hong Kong property market, expecting developers to accelerate sales pace
The expected interest rate cut in the United States in September will be beneficial to the Hong Kong property market, reducing market funding pressure. Property prices have adjusted significantly compared to two years ago, prompting potential buyers to enter the market more quickly. Wealthy Link Real Estate will accelerate the pace of sales, with multiple projects set to be launched in the second half of the year. Wong Kwong Yiu believes that developers will capitalize on the interest rate cut factor to increase listings, expecting transaction volume to rise
According to the information from the Wise Finance APP, Huang Guangyao, Vice Chairman and Executive Director of Wai Tak Lung Real Estate, stated at a press conference that if the US enters an expected interest rate cut cycle in September, it will be a strong support for the property market. It is expected that market funding pressure will decrease, coupled with the fact that property prices have adjusted significantly compared to two years ago, potential buyers will enter the market faster. It is expected that developers will accelerate the pace of property sales. The company plans to launch 3 to 4 projects in the second half of the year, including Park Seasons 2B in Sunrise City; 19 Sing Fung Road project; 233 Prince Edward West project; and 1 Plantation Road in the Peak. It is also expected to launch the Spring Garden Street project in Wan Chai in the fourth quarter.
Huang Guangyao mentioned that Wai Tak Lung Real Estate, Henderson Land Development (0012), New World Development (0017), and Empire Group jointly developed Miami Quay I in Kai Tak, which has sold a total of 100 units, realizing over HKD 1.11 billion, with an average usable area price of approximately HKD 24,500 per square foot. The company has also introduced a 180-day cash payment plan, with an extended transaction period, applicable units include Block B, C; Block A, B of Block 3, with unit types ranging from 2 to 3 bedrooms and usable area between 468 and 661 square feet.
In July, there were zero applications for pre-sale residential projects in Hong Kong. In response to this, Huang Guangyao stated that one should not only look at the figures for a single month. This year, developers have been constrained by interest rate factors, and there are also a large number of units available for sale, hence the slowdown in sales pace to avoid market concerns about oversupply. However, he believes that developers will take advantage of the interest rate cut factor in the future and expects transaction volumes to increase after the rate cut