Real Estate Developers Association of Hong Kong Influences Confidence in Kai Tak Project

Market Recovery Signs in Kai Tak

Following a wave of support measures, developers in Hong Kong are showing increased confidence in the property market. At Double Coast I, a joint venture featuring Midland Realty and New World Development, the initial offering of units is marked by reduced discounts compared to typical launches.

Subtle Changes and Future Expectations

Buyers have flocked to the new listings, with prices set at an average of HK$17,899 per square foot, a modest decline from other recent offerings in the area. Sammy Po Siu-ming, chief executive at Midland Realty, perceives the end of a price war among developers, who are now focusing on sustainable growth rather than immediate profit. “The price war has come to an end,” he stated.

Policy Impact on Financing

Chief Executive John Lee Ka-chiu recently adjusted mortgage financing terms, expanding buyer access to potentially 70% loan-to-value ratios. This policy shift, combined with recent interest rate cuts by the Hong Kong Monetary Authority, is believed to be revitalizing the market.

Activity in the Property Market

• Recent transactions in the primary market climbed to 747 deals totaling HK$11.6 billion.
• Developers are strategically maintaining their inventory and are not aggressively discounting prices.
• Anticipated new home launches could dominate future transactions.

As optimism builds, the Real Estate Developers Association of Hong Kong foresees property prices rising by 5-10% before the year's end, particularly as trends shift towards more stable and positive market conditions.