CK Asset expects 20,000 new-home sales in Hong Kong this year

Residential property market is drawing investment as market volatility rises amid heightened US-China trade tensions, said CK Asset's (1113) sales department chief manager William Kwok Tze-wai.

Speaking on a radio program, Kwok said that global uncertainty, coupled with central bank gold purchases, has prompted some investors to seek refuge in real estate, particularly residential units.

By mid-October, primary residential sales had reached nearly 16,000 units, and the full-year volume is expected to hit around 20,000 units, up roughly 30 percent from last year, Kwok said.

He added the market has also seen capital returning following recent interest rate cuts, with expectations of further rate reductions in the fourth quarter potentially lowering mortgage costs by 0.5 to 1 percent.

Kwok expects price rises on the remaining homes at CK Asset's Blue Coast in Wong Chuk Hang if the interest rates will be decreased again.

Blue Coast has sold 87 percent of units, raising over HK$17.4 billion.

STAFF REPORTER