Hong Kong homebuyers pile into new launches despite rate jitters and Middle East tensions

La Mirabelle in Harbour Bay is to be developed in two phases, each comprising about 1,200 units, for a total of 2,550 units.

Photo: Handouit Hong Kong homebuyers snapped up new launches on Tuesday as developers accelerated sales amid concerns over slower rate cuts and geopolitical tensions in the Middle East.

By about 3.50pm, all 254 flats released at the La Mirabelle project in Tseung Kwan O had been sold, according to market agents. “Today’s positive sales results at La Mirabelle is a vote of confidence for the Hong Kong residential market,” said Daryl Ng, chairman of Sino Group. “The Hong Kong residential market fundamentals are healthy, with good liquidity in transactions, attractive rental yields for investors, and world-class infrastructure such as the MTR network and quality shopping malls for end users.” La Mirabelle in Lohas Park Road – jointly developed by Sino Group, Kerry Properties, K.

Wah International, China Merchants Land and MTR Corporation – is to be developed in two phases, each comprising about 1,200 units, for a total of 2,550 units.

The project will offer one- to four-bedroom flats, with a focus on two- and three-bedroom layouts. “Given the recent increasing number of first-hand projects launching in the market, developers are continuing to deleverage their positions to avoid a longer mid- to high-interest-rate environment,” said Norry Lee, senior director at JLL in Hong Kong.

Derek Chan Hoi-chiu, head of research at Ricacorp Properties, said developers were eager to launch new projects as property market sentiment had improved. “They are releasing flats continuously to capture as much purchasing power as possible,” he said. “The outlook for the Middle East conflict remains uncertain, and persistently high oil prices could influence the direction of interest rates.

But given the market’s strong absorption capacity, developers are likely to continue accelerating launches.” Developers’ push to accelerate launches is also being driven by balance sheet considerations, with some players looking to lock in gains while financing conditions remain manageable. “Some developers are actively destocking as they look to cash out, while interest rate risks remain mild,” said Martin Wong, director and East Asia asset-management leader at Arup.

Following the US Federal Reserve’s decision earlier this month to hold its benchmark rate at between 3.5 per cent and 3.75 per cent, developers in Hong Kong have launched about 700 new units.

The Hong

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