Latest news with #SunHungKaiProperties
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.
Business Times
19-05-2025
- Business
- Business Times
Top Hong Kong builder sees weekend sales frenzy
[HONG KONG] Hong Kong's biggest property developer Sun Hung Kai Properties sold another 376 flats on Sunday (May 18) after receiving more than 34,000 bids, becoming one of the most sought after projects in months thanks to low interest rates. The new round of sales at Sun Hung Kai's Sierra Sea in the Ma On Shan area comes days after a quick sellout of its first batch earlier last week. The flats sold at about HK$9,645 (S$1,601) to HK$13,500 per square feet. A drop in interest rates is helping the city's residential market. The one-month Hong Kong Interbank Offered Rate, or Hibor, which often serves as a reference rate for mortgages, dipped below 1.3 per cent, the lowest since August 2022. 'The one-month Hibor's plunge could push mortgage rates further below residential rental yields and reignite investment interest in Hong Kong's housing market,' Bloomberg Intelligence analysts Patrick Wong and John Wong wrote in a note on Friday. They also expect monthly new-home sales in the Asia financial hub to jump by 36 per cent from 1,100 units in April. The company sold all 160 units in the 1B phase of the same residential development within hours on Wednesday. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Home value for secondary transactions slightly edged up as borrowing costs lowered. Centaline Property Centa-City Leading Index, a gauge for second-hand home prices, climbed by about 0.26 per cent in the week to May 11. Any further advancement in the secondary market will depend on whether the US Federal Reserve cuts rates in June, said Willy Liu, chief executive officer of Ricacorp Properties. Lower interest rates are helping increase the chances of Hong Kong's residential property market bottoming out, according to Jefferies Financial Group. Justin Chiu, executive director of CK Asset Holdings, said Hong Kong's property market is at a 'turning point', and he expects property prices in the city to rise, according to an interview with local media on Monday. The city's home prices are 29 per cent below their peak in 2021, data from the government show. The number of households with negative equity – when the value of a property is less than the outstanding mortgage loan – rose to the highest since 2003 as at the end of March. BLOOMBERG
Business Times
19-05-2025
- Business
- Business Times
Top Hong Kong builder saw weekend sales frenzy
[HONG KONG] Hong Kong's biggest property developer Sun Hung Kai Properties sold another 376 flats on Sunday (May 18) after receiving more than 34,000 bids, becoming one of the most sought after projects in months thanks to low interest rates. The new round of sales at Sun Hung Kai's Sierra Sea in the Ma On Shan area comes days after a quick sellout of its first batch earlier last week. The flats sold at about HK$9,645 (S$1,601) to HK$13,500 per square feet. A drop in interest rates is helping the city's residential market. The one-month Hong Kong Interbank Offered Rate, or Hibor, which often serves as a reference rate for mortgages, dipped below 1.3 per cent, the lowest since August 2022. 'The one-month Hibor's plunge could push mortgage rates further below residential rental yields and reignite investment interest in Hong Kong's housing market,' Bloomberg Intelligence analysts Patrick Wong and John Wong wrote in a note on Friday. They also expect monthly new-home sales in the Asia financial hub to jump by 36 per cent from 1,100 units in April. The company sold all 160 units in the 1B phase of the same residential development within hours on Wednesday. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Home value for secondary transactions slightly edged up as borrowing costs lowered. Centaline Property Centa-City Leading Index, a gauge for second-hand home prices, climbed by about 0.26 per cent in the week to May 11. Any further advancement in the secondary market will depend on whether the US Federal Reserve cuts rates in June, said Willy Liu, chief executive officer of Ricacorp Properties. Lower interest rates are helping increase the chances of Hong Kong's residential property market bottoming out, according to Jefferies Financial Group. Justin Chiu, executive director of CK Asset Holdings, said Hong Kong's property market is at a 'turning point', and he expects property prices in the city to rise, according to an interview with local media on Monday. The city's home prices are 29 per cent below their peak in 2021, data from the government show. The number of households with negative equity – when the value of a property is less than the outstanding mortgage loan – rose to the highest since 2003 as at the end of March. BLOOMBERG
South China Morning Post
18-05-2025
- Business
- South China Morning Post
Buyers snap up 73% of SHKP's Sierra Sea flats on sale as hot streak continues
Sun Hung Kai Properties (SHKP) sold 73 per cent of the units allocated on Sunday to buyers of its Sierra Sea residential project, capitalising on a sharp fall in interest rates and renewed optimism in the city's stock market outlook. Hong Kong's largest developer sold 277 of the 376 units on offer in phase 1B as of 3.40pm local time, according to agents involved in marketing the project, extending a hot streak since its launch last month. SHKP would continue to take orders from homebuyers up to 11pm, they added. The units on offer include 39 one-bedroom flats, 271 two-bedroom flats and 66 three-bedroom flats, measuring 302 sq ft to 807 sq ft. The price has been set between HK$3.2 million and HK$10.5 million after discounts, or HK$9,645 to HK$13,345 per square foot. The lot is worth HK$2.3 billion (US$294 million) in total. Sierra Sea, located in Shap Sze Heung – between Sai Kung and Ma On Shan in New Territories – offers a total of 9,700 units when fully completed. It is the single biggest project since Cheung Kong Property delivered 15,808 flats at Kingswood Villas in Tin Shui Wai in 1999. 'Homebuyers are optimistic about the growth potential of this project,' said Sammy Po Siu-ming, chief executive of Midland Realty's residential division. 'In addition, sentiment has improved as the trade war eased and stock prices rebounded.' Hong Kong's interbank rates tumbled last week to the lowest level in 33 months as market intervention to weaken the local currency led to a surge in liquidity in the banking system. The Hang Seng Index has risen 15 per cent this year, boosting equity wealth, as investors became more upbeat amid big gains in new listings.
South China Morning Post
18-05-2025
- Business
- South China Morning Post
Hong Kong property: new pricing weighs on home market as tariff war hurts demand
Both transaction volume and home prices in Hong Kong's secondary property market remain under pressure, as developers continue to launch new residential projects at low prices and homebuyers stay cautious amid uncertainties arising from US tariffs, market experts said. 'The cluster of secondary residential projects that are being affected by the low pricing of new projects are bigger due to convenience in transportation' said Norry Lee, senior director of projects strategy and consultancy in Hong Kong at real estate firm JLL. Sun Hung Kai Properties' Sierra Sea – part of its 9,700-unit megaproject in Shap Sze Heung, located between Sai Kung and Ma On Shan – set its selling price last month at levels last seen in the area in 2013. The pricing was still about 20 per cent lower than second-hand properties in the district. 'The project did not just pressure home prices in the second-hand market in nearby districts, but in the whole New Territories East,' Lee said. A 502 sq ft, two-bedroom unit at Solaria in Tai Po was recently sold at a 30 per cent loss, according to an agent. The flat changed hands for HK$6.23 million after the owner bought it for HK$8.8 million in 2018. Potential buyers queue up to the property sale of Sun Hung Kai Properties' Sierra Sea at the International Commerce Centre on May 3. Photo: Elson Li The Centa-City Leading (CCL) Index, a gauge of lived-in homes compiled by Centaline Property Agency, stood at 136.7 on Friday, a 0.3 per cent increase from the same period last month. The sub-index for Kowloon East dropped 1.7 per cent, while Kowloon West and Hong Kong Island saw slight increases.
