Residential sales in July dampened by rate hikes

The average mortgage rate reached 2.5% by the end of the month.

Hong Kong recorded 3,671 home sales transactions in July, lower than the 4,826 deals in the previous month as faster-than-expected rate hikes dampened buying sentiment, according to JLL.

In a report, JLL said the average mortgage rate hit the cap at 2.5% by month end, whilst mass residential capital values dipped at 0.5% month-on-month in July.

READ MORE: More than 80% shares of residential property at Kowloon on sale: JLL

A notable transaction in July involved a house at No. 15 Shouson in Shouson Holl which was sold for $870.2m. On the government side, a residential site at Hospital Road was awarded to K. Wah Group for $551m.

JLL added that sales performance of new launches varies amongst projects, with The Vin in Cheung Sha Wan by Carrianna Group and Choice Holdings selling only 40% of the 50 units it launched.

Sun Hung Kai Properties, meanwhile, saw all 336 units put up for sale at Novo Land (Phase 1A) in Tuen Mun sold on the first day of the launch.