Hibor decline bolstering property market transactions

The recent decline in Hong Kong interbank offered rates is favorable for the property market as it has boosted transaction volume, says Henderson Land Development’s (0012) co-chairman Martin Lee Ka-shing.

The one-month Hibor, to which the mortgage rate is linked, may have some room to decline further in the future, Lee said, adding that Henderson plans to accelerate the launch of new residential projects in the second half of the year.

Lee held an optimistic outlook for Hong Kong’s retail market, saying that the company's core district shopping malls saw a 10 percent increase in sales during the Labour Day holiday and Mother’s Day period compared to pre-pandemic levels of 2018.

Regarding the office market, Lee said that tenants are inclined toward buildings incorporating innovative and sustainable features. The occupancy rate of the International Finance Centre at Central has exceeded 90 percent, while that of The Henderson is also over 80 percent, he said.

On the trade war, Henderson's other chairman Peter Lee Ka-kit said there is more space for negotiations between China and the US now than six months ago due to the high inflation pressure within the US.

HELEN ZHONG