Brisk flat sales at Hong Kong project as buyers unfazed by potential rate hikes

Hong Kong homebuyers flocked to the second round of new flat sales at the La Mirabelle I project in Tseung Kwan O, underscoring continuing demand for property amid escalating tensions in the Middle East. By noon, 72 of the 168 units had been sold, according to agents. Another 86 flats have been made available via tender. The flats via the regular sale were priced between HK$5.93 million (US$756,000) and HK$8.99 million, including maximum discounts of 15 per cent. They were priced 1 per cent higher than those in the previous batch a week ago. Flats in the new batch have a saleable area of between 360 sq ft and 558 sq ft and with layouts of one to two bedrooms. The brisk sales come amid fresh warnings of a potential increase in US interest rates as oil supplies remain restricted amid the ongoing US-Israel war against Iran. Overnight, US President Donald Trump warned of dire consequences for Tehran if the crucial Strait of Hormuz remained closed, where about a fifth of the world’s oil supply passed through before the conflict began. While the US Federal Reserve kept its target rate unchanged in its last meeting, a persistent increase in oil prices has added uncertainty to the outlook. Hong Kong’s monetary policy moves in lockstep with the US to keep the local currency’s peg to the dollar. Of the buyers on Tuesday, an estimated seven out of 10 were end users and the rest were investors looking to rent out the flats, according to Sadia Lau, director at the Centaline Property Agency Kowloon. “Nearly 250 new home sales have been recorded this month,” Lau said. “If the launch [on Tuesday] sells all 168 units, the number of transactions will increase to about 400, up 30 per cent compared to the same period last month, demonstrating strong purchasing power.” The 254 flats released last week sold out within hours. Jointly developed by Sino Group, Kerry Properties, K. Wah International, China Merchants Land and MTR Corporation, La Mirabelle on Lohas Park Road comprises two phases with a total of 2,550 units in four towers. The sale follows the 39 units released by Henderson Land Development on Monday at the Chester project in Hung Hom. About two-thirds of those units found buyers on the first day of launch, according to agents. The earlier launch of flats in the fifth phase of the Midtown South redevelopment comprising 123 units was sold out on the first day last month.