La Mirabelle sells in hours as developers ramp up sales, buyers fret over rates

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. These include 122 flats at foto+ in Mong Kok by K&K Property, 100 at the Connext Project in Wong Tai Sin by Wang On Properties, 93 units at Deep Water South project in Wong Chuk Hang by Wheelock Properties and MTR Corporation, and 123 units at Chester in Hung Hom by Henderson Land Development. The Hong Kong Monetary Authority (HKMA) said the outlook for US monetary policy remained uncertain, as oil prices rose amid supply disruptions linked to the Middle East conflict. The city’s de facto central bank has kept its base rate unchanged at 4 per cent, in line with the US, to maintain the Hong Kong dollar’s peg. But the uncertainties did not deter buying interest. At La Mirabelle, one- to four-bedroom flats were priced between HK$5.73 million (US$731,350) and HK$9.3 million after discounts of up to 15 per cent, according to price lists. Units range from 323 sq ft to 1,716 sq ft, with completion scheduled for June 2027. End users accounted for around 70 per cent of buyers, according to Centaline Property Agency. “The remaining 30 per cent were long-term investors, mainly seeking rental income,” said Louis Chan, vice-chairman of Centaline Asia-Pacific and president of its residential division. Chan added that primary home sales in March could reach an 18-month high of about 2,500 units, while first-quarter sales may hit 6,200 units – the strongest level in 38 quarters.