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.
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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.
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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.
