Hong Kong property sales showed a modest uptick on Thursday, with buyers examining 130 new units, but the overall pace remained cautious as market participants weigh the likelihood of higher interest rates later this year.
Developers launch new phases amid steady demand
At the Southside project near Wong Chuk Hang MTR station, agents reported that 30 of the 75 units in Phase 4B of La Montagne were sold on the opening day. The two‑bedroom apartments range from 484 to 546 sq ft, with listed prices starting at HK$13.4 million after discounts. Adjusted for the discounts, the price per square foot sits between HK$27,545 and HK$31,747.
One Victoria Cove’s Phase 4 in Hung Hom also attracted interest. Five units changed hands, covering two‑ to three‑bedroom layouts from 338 to 585 sq ft. With the deepest discounts applied, prices fell between HK$6.88 million and HK$13.52 million, translating to HK$19,589‑HK$23,105 per square foot.
Both projects are joint ventures. La Montagne is being developed by Kerry Properties, Sino Land, Swire Properties and the MTR Corporation, while One Victoria Cove involves Henderson Land Development, Hysan Development and Empire Group.
Related: Investors stay loyal to China despite SpaceX buzz
Interest‑rate outlook dampens optimism
The launches came after the U.S. Federal Reserve released its quarterly projections, showing nine officials expecting a rate hike before year‑end. The accompanying policy statement omitted language that had previously suggested a possible cut in rates this year.
Hong Kong’s monetary authority echoed the sentiment, warning of “interest‑rate uncertainties” while keeping its base rate steady at 4 percent.
Luxury segment sees isolated activity
Affluent buyers remain active.
That transaction stands out because the price per square foot is significantly higher than the recent averages for comparable luxury apartments, indicating that a niche of affluent buyers remains active despite broader market caution.
Related: Building the Future: Technology and Social Progress in Harmony
What buyers are saying
Local agents observed that prospective purchasers are taking a “wait‑and‑see” approach. One broker, who asked to remain anonymous, said the discount levels on the new launches are “reasonable, but the shadow of potential rate hikes makes people pause before committing.”
In contrast, a first‑time buyer who recently toured the La Montagne units told the press that the current price points are “still within reach” compared with last year’s figures, though she added that “any hint of higher borrowing costs could push her to rent instead.”
Outlook for the coming months
With the Federal Reserve’s next policy meeting scheduled for September, analysts expect the market to stay on edge. The Hong Kong Monetary Authority has signaled that it will monitor the situation closely, but has not indicated any immediate policy shift.
In the meantime, developers appear to be balancing inventory with demand by offering modest discounts rather than aggressive price cuts. The mixed response to the latest launches suggests that while demand remains, it is tempered by the broader macro‑economic environment.