Developers are in a rush to sell as the sales consent for uncompleted projects in November surged to a 16-year high, while HIBOR climbed again.
Victor Lui, deputy managing director of Sun Hung Kai Properties (0016), said that though the Victoria Harbour project in North Point has seen a high volume of transactions in the past two years, it is normal to see a correction.
Mantin Heights in Ho Man Tin, developed by Kerry Properties (0683), is collaborating with a financial institution to offer a new mortgage plan to customers.
The plan, "Super 1+2," allows buyers to borrow 70 percent of the maximum mortgage loan to run for up to 28 years. The interest rate would be the prime rate minus 3.88 basis points for the first three years and prime rate minus 0.5 points from the fourth onward.
In the secondary market, a 696-square-foot three-bedroom unit at The Palazzo changed hands for HK$10.5 million, or HK$15,086 per sq ft, HK$300,000 lower than the asking price.
OCBC Wing Hang said that as housing demand might have shifted from the private sector to the public sector, it expects smaller private homes to see a deeper price correction in future.
The overall house price index is expected to drop about 15 percent by the end of next year from a record high.
Real estate brokerage Cushman & Wakefield expects home prices to slump a further 10 percent next year.