NWD tests market with 28 Pavilia Rosa flats for sale amid Hang Seng slump

Hong Kong developer’s Kowloon Tong project, to be sold on a ‘first come, first served’ basis on Friday, is a test of market sentiment

NWD said the flats would be sold via a regular price list on a “first come, first served” basis as the developer announced that the project had so far sold 42 residences worth about HK$2.4 billion (US$306 million) via a tender.

The launch on Friday would be the first regular sale in more than two weeks in the city, as Hong Kong’s bellwether stock index has been taking a beating amid the US-Israel war on Iran and fears of an interest rate hike by the US Federal Reserve.

“Primary market transactions have been surging for consecutive months, absorbing a substantial amount of purchasing power,” said Derek Chan Hoi-chiu, head of research at Ricacorp Properties. “Therefore, a slight adjustment in the recent period is perfectly normal.”

“The recent volatility in the stock market may affect developers’ sales strategies, but whether it will have any actual impact still requires time to observe and assess,” Chan said.

The Hong Kong Monetary Authority moves in lockstep with the Fed to keep the local currency pegged to the US dollar.

The risk of an interest rate hike in the US has increased following the release on Friday of a positive jobs market report in the world’s largest economy.