Hong Kong Property Index Rises 0.5% as Major Banks Keep Prime Rate Steady
AM730 · 1 SOURCESabout 1 hour ago2 MIN
Summary
The Centa-City Leading Index (CCL) climbed to 162.13 points, posting a 0.5% weekly increase as the secondary market continues to show a tug-of-war between buyers and sellers. This reading represents the second-highest level in 159 weeks since late August 2023. Major banks extended their fixed-rate mortgage programs, with HSBC raising its rate by 0.2 percentage points to 2.93%, though this remains lower than HIBOR-linked mortgages, supporting property sentiment. Hong Kong's major lenders kept their prime rate unchanged despite the US Federal Reserve's rate hike on September 17, providing a tailwind for the property sector.
Key Points
- CCL rose to 162.13 points, up 0.5% on the week, the second-highest level in 159 weeks
- HSBC raised its fixed-rate mortgage to 2.93%, up 0.2 percentage points, but still lower than HIBOR-linked mortgages
- Hong Kong major banks kept prime rate unchanged after the Fed's 0.25% hike on September 17
- Kowloon led gains with CCL_Mass at 161.25 points, up 1.05% for two consecutive weeks
- New Territories East declined for four straight weeks, down 3.29% cumulatively
- Year-to-date, Hong Kong Island leads all regions with a 17.1% gain, followed by large units at 14.14%
- The index is 2.87 points or 1.77% below the 165-point target, expected to be reached in Q4
- The latest index reflects transactions signed September 7-13, with over 70% from August 24-30
Why It Matters
Hong Kong's refusal to follow the US rate hike signals the Monetary Authority's intent to shield the property market from borrowing cost pressures, potentially accelerating the path toward the 165-point target. The combination of continued new project sales and attractive fixed-rate mortgage options provides dual support for prices amid ongoing negotiations between buyers and sellers in the secondary market .
Hong Kong's refusal to follow the US rate hike signals the Monetary Authority's intent to shield the property market from borrowing cost pressures, potentially accelerating the path toward the 165-point target. The combination of continued new project sales and attractive fixed-rate mortgage options provides dual support for prices amid ongoing negotiations between buyers and sellers in the secondary market .