Quiet market awaits rate cuts

June Chen

Sales of old homes fell over the weekend as buyers waited for a possible US Federal Reserve interest rate cut and more new project launches.

The market is also waiting to see what measures Chief Executive John Lee Ka-chiu might unveil to stimulate the economy in his third policy address next month.

The city's 10 major housing estates saw eight deals over the weekend amid poor weather compared to 10 to a week earlier, the lowest in six weeks, according to Centaline Property.

Louis Chan Wing-kit, Asia Pacific vice chair of the residential division at Centaline, said impending rate cuts will ease lending costs, encouraging the homebuyers to purchase affordable new flats.

Homeowners, too, are waiting for rate cuts to raise selling prices.

Attractively priced projects in Kai Tak launched in the past week also drew buyers away from the secondary market.

KT Marina 1 in Kai Tak recorded five deals over the weekend worth a total of HK$32.4 million. The project, co-developed by K Wah International (0173), Wheelock Properties and China Overseas Land and Investment (0688) has sold 24 flats in three days.

In the commercial market, "Minibus King" Ma Ah-muk's family has put the second floor of the Peninsula Centre in Tsim Sha Tsui on the market for HK$420 million, after selling another commercial property, Eco Tree Hotel on Des Voeux Road West by public tender several weeks ago, according to Midland.