Latest news with #Hibor
South China Morning Post
12 hours ago
- Business
- South China Morning Post
Hong Kong housing market bound for slow recovery amid cheaper mortgages: analyst
Hong Kong's housing market is poised for a gradual recovery starting in the second half of this year, as population inflows, falling interest rates and a rebound in rental demand restore confidence, according to Bocom International. The investment bank said home prices could rise by 3 per cent over the next six months, followed by 5 per cent increases in both 2026 and 2027, as sentiment improved amid declining borrowing costs while returning residents and arriving professionals boosted demand. The upbeat forecast came after signs of a cooling market amid geopolitical tensions and stock-market volatility. Property transactions in Hong Kong dropped to a three-month low in May, with the number of deals falling 11 per cent to 6,442 from a month earlier, according to data from the Land Registry. 'Key turning points are emerging despite lingering macro uncertainties,' Bocom analyst Philip Tse said in a report on Tuesday. He referred to a recent sharp drop in the one-month Hong Kong interbank offered rate (Hibor), a key reference for mortgage pricing, which fell to nearly a three-year low of 0.6 per cent on May 27 from 3.95 per cent on April 30 after interventions in the currency market by the Hong Kong Monetary Authority 'We believe it will help restore confidence in the property market, boosting optimism among both homebuyers and investors, and supporting the sector's stabilisation and recovery,' he said. Lower mortgage rates would ease repayment burdens on homebuyers, effectively reducing the cost of home ownership, while offering 'a favourable opportunity for first-time buyers to enter the property market', the bank said. A recent correction in home prices, steady rental yields and potential capital gains could also help revive interest from long-term investors, it added.
Business Times
28-05-2025
- Business
- Business Times
Hong Kong home prices snap falling streak in April
[HONG KONG] Hong Kong's home prices ended four months of decline and edged up in April, government figures showed on Wednesday (May 28), as falling mortgage rates helped lift buying sentiment. Private home prices rose 0.4 per cent in April from the month before, following a revised 0.3 per cent fall in March, data from the Rating and Valuation Department showed. The prices have dropped 1.2 per cent so far this year to their lowest level since 2016. Home prices in Hong Kong, one of the world's most unaffordable cities, have tumbled nearly 30 per cent from a 2021 peak, hurt by higher mortgage rates, a weak economic outlook, and poor demand as many professionals have left the territory. Authorities tried to prop up the sector last year, lifting all curbs on property purchases and relaxing down payment ratios, but housing demand has remained soft. Realtors forecast home prices in 2025 could rise or fall by 5 per cent, depending on the pace of official rate cuts and the severity of trade tensions between China and the United States. Eddie Kwok, executive director of real estate consultancy CBRE, said if the interbank rate continues to fall, the residential property market may see a recovery as it may cost less to repay mortgage as compared to rent. One-month Hong Kong dollar interbank rate Hibor, which many of the mortgage plans are linked to, hit a fresh three-year low this week, making mortgage rates more affordable for home buyers. REUTERS
RTHK
28-05-2025
- Business
- RTHK
HK home prices rebound 0.35pc in April
HK home prices rebound 0.35pc in April A valuation expert says significant rebounds in property prices are still unlikely this year as developers may continue to cut prices. Photo: RTHK Hong Kong's lived-in home prices rebounded in April, capping a four-month decline. Official figures released by the Rating and Valuation Department on Wednesday showed that the home price index rose to 285.7 in April, up 0.35 percent from a month earlier, but that was still 7.7 percent lower from a year ago. For the first four months of the year, however, the gauge declined 1.21 percent. While prices of small and medium-sized units rose by 0.35 percent month on month on average, that for large units rose higher, 0.42 percent. Rental prices, meanwhile, continued to head north for the fifth consecutive month, and rose by 0.31 percent to 193.7 last month, or 3.64 percent higher over a year ago. For the first four months, the rental gauge was up by 0.62 percent. Commenting on the figures, Eddie Kwok, executive director of valuation and advisory services at CBRE Hong Kong, said residential prices had stabilised and were bottoming out. "Positive carry for residential properties resurfaces as the one-month Hong Kong interbank offered rate [Hibor] dropped in May," he said. The one-month Hibor rate, which is linked to local mortgage loans, fell to its lowest point in nearly three years last week, thanks to a flood of liquidity entering the city's capital markets. "If this trend can be sustained, the residential property market is likely to experience a recovery as it might cost less to repay mortgages as compared to renting," Kwok said. "And this is likely to attract buy-to-lease investors and end-users entering the residential property market eventually." But Kwok noted that significant rebounds in prices are still unlikely this year as developers that are keen to clear out their mounting inventories might take the opportunity to replenish their capital and continue to cut prices. The Hong Kong Monetary Authority has warned that Hibor rates may still rebound.
Business Recorder
26-05-2025
- Business
- Business Recorder
China's yuan climbs to near seven-month high as investors assess tariff risks
HONG KONG: China's yuan rose to near a seven-month high against the dollar on Monday, as Asian currencies were broadly stronger while the greenback fell on Trump's new tariff threats. Both China's onshore yuan and its offshore counterpart advanced past the 7.17 in early Asian trade, hitting the strongest level since November 8. The dollar recovered slightly on Monday after US President Donald Trump abruptly delayed 50% tariffs on European Union goods. The currency had tumbled on Friday following Trump's new EU tariff comments. By 0403 GMT, the yuan was 0.08% higher at 7.1744 to the dollar after trading in a range of 7.1674 to 7.1775. The yuan is up 1.4% against the dollar this month, and 1.7% firmer this year, on the back of 'sell US' sentiment due to tariff policy uncertainties and a recent Moody's downgrade of the US sovereign credit rating. Goldman Sachs describes the recent strength in the yuan as the 'renaissance' of the currency, expecting it to rise against the dollar over the next 12 months. The broad dollar weakness has resulted in moving 'diversification demand away from dollar assets,' Goldman Sachs' China equity strategist Kinger Lau said in a note. China's yuan inches higher, set for fifth straight weekly gain The bank expects the yuan to reach 7.20, 7.10 and 7.00 on a 3-month, 6-month and 12-month horizon against the dollar. Prior to the market opening, the People's Bank of China set the midpoint rate, around which the yuan is allowed to trade in a 2% band, at 7.1833 per dollar, its strongest since April 2 and 96 pips weaker than a Reuters' estimate. This is the second time in May the central bank has set the yuan fixing weaker than Reuters' estimate. 'It means the CNY fixing guidance may now serve to smooth out two-way volatility rather than countering one-way depreciation pressure,' said Ken Cheung, chief Asian FX strategist at Mizuho Bank. But he believes the central bank is not seeking yuan appreciation, which could weigh on the export sector amid heightening tariffs. Separately, in Hong Kong, the overnight Hong Kong interbank offered rate (Hibor) hit 0.02336%, a record low since data became available in 2006 due to ample liquidity.
South China Morning Post
24-05-2025
- Business
- South China Morning Post
Hong Kong homebuyers flock to latest Sierra Sea units as mortgage rates ease
Emboldened by lower mortgage rates, Hong Kong homebuyers on Saturday purchased all 216 of the new units offered at Sun Hung Kai Properties ' Sierra Sea project in Sai Sha in the New Territories. All units found buyers within six hours of the sale, which began at 10am, according to agents. Another 25 units were available via tender. Earlier this week, the one-month Hong Kong interbank offered rate (Hibor), which is linked to mortgage loans, fell below 1 per cent for the first time since July 2022. On Friday, the one-month Hibor settled at 0.58964, according to the Hong Kong Association of Banks. 'Benefiting from a decline in the one-month Hibor, mortgage burdens have eased,' said Derek Chan, head of research at Ricacorp Properties. The lower Hibor was attributed to higher liquidity entering the city's capital markets as the Hong Kong Monetary Authority began intervening in the currency market. Hong Kong pegged its dollar to the American currency in 1983, and in 2005 it instituted a trading band of HK$7.75 to HK$7.85 per US dollar. The HKMA intervenes in the open market when the local currency is expected to trade beyond its band.
