Hibor flirts with 4-year low amid hopes for upturn

Business | Winnie Lee 21 Jul 2020

The one-month Hong Kong Interbank Offered Rate fell for a seventh consecutive trading day to a near four-year low, as a survey showed that more than a third of Hongkongers expect home prices to pick up in the second half.

The one-month Hibor, a benchmark for the local mortgage rate, fell to 0.275 percent. The drop followed the release of results from a survey of 500 respondents interviewed in late June before the third wave of infections in Hong Kong.

Conducted by online property platform Squarefoot, the survey saw 39 percent of respondents saying they expected home prices to increase by an average of 9.4 percent in the second half.

The survey results also showed that the proportion of respondents who believe property values had reached their peak in the past 12 months had dropped from 47 percent to 34 percent from a previous survey conducted in April.

In the secondary market, a site with an area of over 10,000 square feet at Henderson Road on Jardine's Lookout changed hands for HK$800 million by a consortium, a market source revealed.

A residential building with six units in Kowloon Tong, involving 11,696-sq-ft of the area was sold for around HK$221 million or HK$18,919 power sq ft after more than 20 percent was slashed from the initial asking price.

The price per sq ft was lower in comparison to similar flats in the same district, Centaline Property Agency said

In the primary market, the Buildings Department approved three building plans in Kai Tak in May, involving an area of 2.63 million sq ft.

Among them, a site in Kai Tak Area, owned by Sun Hung Kai Properties (0016), would be able to provide around 1.06 million sq ft of residential space.

Kerry Properties (0683) sold a 2,846-sq-ft house at Mont Rouge in Shek Kip Mei at HK$159 million or HK$56,000 per sq ft - around 30 percent less than early last year.

Wheelock Properties sold a 1,360-sq-ft flat at Oasis Kai Tak in Kai Tak for HK$46.12 million, or HK$33,912 per sq ft.

In the commercial property market, Hanison Construction (0896) is offering its four-story industrial building "West Castle" in Kwai Chung at a target price of HK$250 million, according to Savills. The building has a site area of 5,727 sq ft and a gross floor area of 27,138 sq ft.

With the declining Hibor, the Centaline Mortgage said the registration number of the re-financing mortgages in banks rose 20.5 percent month-on-month to 1,484 in June.

Search Archive

Advanced Search
April 2021

Today's Standard