HIBOR soars as Fed will act

Business | Jeannie Tang 5 Dec 2018

The one-month Hong Kong interbank offered rate rose to 1.86 percent, the highest level since October 2, while the market predicted the rate would increase due to the annual account settlement and the expectation of a US interest rate hike in mid-December, leading local banks to follow suit.

Henderson Land Development (0012) offered an additional discount of 1 percent to Home Ownership Scheme applicants for Reach Summit in Yuen Long for this month and all home buyers will take part in a lucky draw to win an electric vehicle.

Henderson Land sales manager Thomas Lam Tat-man said the group may increase the price of the flats, sales of which had been halted, by 3 to 4 percent and the price list will be released before Christmas. The group will launch two projects in the first quarter of next year, involving 700 units in total.

The buyer of a unit at Mandarin Court in Ho Man Tin, in which the dead body of a female security guard was found yesterday, has forfeited the deposit.

In the secondary market, there are some price-cut deals. A two bedroom flat at The Visionary in Tung Chung, which measures 671 saleable square feet, sold for HK$7.3 million or HK$10,879 per square foot, after the seller reduce the price by HK$1.7 million from September.

A 337 ssf unit at Sunshine City in Ma On Shan recorded a price cut of HK$1.12 million, changing hands at HK$4.98 million or HK$14,777 psf, which was 20 percent lower than the market price.

Meanwhile, La Vetta in Kao To Shan has opened its show flat. A spokesman for Nan Fung Group (3377) said this project recorded 12 deals for HK$750 million and the group will unveil two new projects next year, involving 500 units in total.

The Land Registry reported a 48 percent slump in the number of transactions for all building units to 3,953 in November over the same period last year. The value of transactions amounted to HK$43.3 billion, 35.1 percent down year on year.

Charles Chan, managing director of Savills Valuation and Professional Services, predicted home prices to drop by up to 10 percent this year due to the interest rate hike, the Sino-US trade war and the decline in capital from China.

He expects land valuations to decrease as well since developers will bid conservatively amid the property market downturn. Old property acquisition in the urban areas will continue as its land supply is insufficient and the risk is limited.

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