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Property News Weekly Digest
〈The Standard, Mar 25, 2023〉Developers are rushing to sell new homes below market prices in an attempt to reduce inventory amid ample first-hand supply and economic uncertainties. It potentially puts pressure on the market, which has just witnessed a small recovery after the borders reopened.

CK Asset (1113) and Sun Hung Kai Properties (0016) have slashed the prices of 88 units on the first price list at phase two of Grand Jete in Tuen Mun to HK$12,509 per square foot on average after discounts, 16.9 percent cheaper than the first batch of phase one that was put on the market in June.

All 400 flats in the project will be on offer in the first round of sales over the weekend, they said.

In Ho Man Tin, Chinachem has priced the 50 flats in the first batch of its In One on top of the MTR station at HK$24,838 per sq ft after discounts, just slightly above the cost of last year's new homes in Kai Tak.

〈Hong Kong Business, Mar 24, 2023〉Hang Seng Bank has announced that its Hong Kong dollar prime lending rate remains unchanged at 5.625% per annum (pa).

According to Hang Seng bank, Hong Kong dollar savings deposit rates also remain unchanged. The interest rate pa is 0% for those below HKD5,000, whilst it id 0.625% for HKD5,000 or above.

〈Asian Post, Mar 23, 2023〉It has been over two decades since rent controls have been implemented in Hong Kong, a city that has usually been laissez-faire with price controls; which is why for low-income families dwelling in subdivided units (SDUs) who have been grappling with high rents, plans under the Landlord and Tenant (Consolidation) (Amendment) Ordinance 2021 to prohibit any increase in the rent for the first term of tenancy, which is equivalent to two years, should be welcomed.

On renewal, which is another two years, landlords of the so-called “cage houses” or “coffin homes” may only increase rent up to a 10% cap, but they may be restricted to an even lower rent rise.

The rent hike for the second term tenancy is determined by the percentage change of the citywide rental index published by the Rating and Valuation Department, which means that landlords cannot always increase the second term rent by 10%.

〈CNBC, Mar 22, 2023〉Even with turmoil in the banking industry and uncertainty ahead, the Federal Reserve likely will approve a quarter-percentage-point interest rate increase next week, according to market pricing and many Wall Street experts.

〈BBC, Mar 21, 2023〉Rate expectations have been on a rapidly swinging pendulum over the past two weeks, varying from a half-point hike to holding the line and even at one point some talk that the Fed could cut rates.

Shares in Germany's Deutsche Bank fell by 14% at one point on Friday, with other lenders also seeing big losses.

London's FTSE 100 ended the day down 1.3%, while stock markets in Germany and France dropped even more sharply.

But US fears did not materialise.