20 luxury flats to rise in Mid-Levels

Hong Kong's Buildings Department approved 19 construction plans in March, including the redevelopment of Lai Sun Development's (0488) project on Kotewall Road in the Mid-Levels into a 19-story tower with 20 flats.

The tower will include two basement levels and recreational facilities over a total area of 54,000 square feet.

The project will offer around 20 three- and four-bedroom apartments, with plans to make them available for sale as early as 2025.

Lai Sun Development had acquired two old buildings at No 1 and No 1A Kotewall Road for a total of HK$1.3 billion last year, with plans to redevelop them into a luxury residential development.

Meanwhile, five 3-story detached houses will be built in Jardine Court, a luxury project located on Mount Butler Drive in Jardine's Lookout.

Nan Fung Group was reported to have bought a 60 percent stake in Jardine Court for over HK$900 million last year.

In other news, the Hong Kong Interbank offered rate stood above 4.76 percent across all maturities and is expected to remain high this year until the US cuts rates.

The mortgage-related one-month Hibor advanced for the fifth day in a row to 4.77506 percent yesterday, marking a new high since December last year.

HSBC Asia expects the city's underlying interest rates will remain high for a longer time as the lender predicts US Fed will not cut rates until the middle of next year.