R3 SCMP High rates sink sales in primary market

R3 SCMP High rates sink sales in primary market - Tuesday,...

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Tuesday, January 31, 2006 PROPERTY High rates sink sales in primary market Only 100 units expected to have been sold this month as homebuyers stay put -------------------------------------------------------------------------------- Cautious sentiment continues to cloud the housing market, with only 100 primary flat sales likely to have been closed this month, says Centaline Property Agency. If confirmed after numbers are officially released by the Land Registry Department later next month, the figure would represent a 91 per cent drop from an estimated 1,126 primary transactions completed in January last year. Centaline said just 95 deals in the primary market were registered in the first 26 days of this month, worth a combined $490 million. "Total deals for the whole month are expected to be around 100, and transaction values stand at about $500 million," the company said yesterday in its latest report. It added that activity in the primary market had dropped drastically since last month as home seekers were reluctant to make purchases in the wake of interest rate rises. Banks have raised their prime lending rates - to which mortgage rates are pegged - eight times since early last year from 5 per cent to between 7.75 per cent and 8 per cent, and the steady rise in rates has reflected on declining demand for home loans. The Hong Kong Monetary Authority said new loans drawn down fell 4.3 per cent to $7.5
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This note was uploaded on 09/06/2010 for the course FINA FINA0805 taught by Professor Tse during the Spring '09 term at HKU.

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R3 SCMP High rates sink sales in primary market - Tuesday,...

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