City home prices have fallen 17pc in 'orderly correction'

Financial Secretary Paul Chan Mo-po said home prices in Hong Kong had by September fallen around 17 percent over the previous two years.

The transaction volume was low and the price adjustment was gradual, he noted, which indicated an orderly correction.

No panic effects or confidence issues have emerged in the market, said Chan, and authorities are monitoring the leverage and borrowing activities of developers.

Drawing from past experiences, authorities have implemented multiple rounds of macro-prudential measures. So in the event of any adjustment in property prices, the impact on finances and the public should be manageable.

Meanwhile, a property located at 4 Liberty Avenue in Ho Man Tin was sold to Henderson Land Development (0012) through a tender conducted by Savills, achieving the reserve price of HK$355 million.

Augustine Wong Ho-ming, executive director of Henderson Land, mentioned that the site encompasses an approximate area of 40,000 square feet, which is relatively small.

He said: "Our plan is to develop it into a residential building with a focus on small to medium-sized units, specifically targeting first-time buyers."

Additionally, the sale of a group of upscale properties in Mid-Levels West is close to finalization, with an agreed-upon purchase price approaching HK$155 million.

According to Midland Shops, the entire property at 60 Conduit Road and the second floor along with the garage at 60B Conduit Road are approaching the final stages of acquisition, with the negotiated purchase price reaching approximately HK$155 million.

Lai Sun Development (0488) among others owns Lai Sun Yuen Long Centre, which received approval for the reconstruction of 828 residential units more than two years ago.

Currently, the Planning Department has not objected to the request for further relaxation of construction density to build 1,019 flats.

The new plan proposes the construction of two 29-story buildings, with a residential gross floor area of approximately 469,599 square feet. The average unit size is around 461 sf.

The plan will be reviewed by the Town Planning Board on Friday.

Seasonal factors are driving a broad increase in Hong Kong interbank offered rates, with the mortgage-related one-month Hibor reaching a nearly three-week high at 5.62 basis points And the two-week Hibor has surged above six basis points - a record high.