BOC Hong Kong (2388) and Bank of East Asia (0023) lifted their rates by up to 0.7 percentage points.

BOC Hong Kong said the new rates – ranging from prime minus 2-2.5 percent – will be effective from today.

Previously, its mortgage rate stood at prime minus 2.7 percent. BOC Hong Kong’s prime rate stands at 5 percent.

New mortgages will be offered at 2.5-3 percent – a hike of as much as 0.7 percentage points.

The bank’s HIBOR-based rates will also be lifted to HIBOR plus 2.4-2.9 percent from HIBOR plus 2-2.5 percent.

Bank of East Asia also lifted its prime-based mortgage rates to prime minus 2.1-2.6 percent, from the previous prime minus 2.25 to 2.75 percent.

With the lender’s prime rate set at 5.25 percent, the new rates will range between 2.65-3.15 percent.

HIBOR-based rates at BEA are unchanged. As of October, BOC Hong Kong was the second largest mortgage provider in the SAR with a market share of 17.7 percent, according to Centaline Mortgage Broker.

HSBC (0005) was the market leader with a 22.6 percent share. Standard Chartered (2888) last month became the first local bank to hike its mortgage rates for the sixth time this year. Its HIBOR- based rate of HIBOR plus 2.5 to 3 percent remains the highest in the market.

The rate hikes, however, are not deterring the launch of new flats.

Sun Hung Kai Properties (0016) has put on the market another 32 flats – each sized 692 feet – at The Wings in Tseung Kwan O for an average price of HK$7,329 psf. The units are priced at a minimum HK$4.8 million. So far, SHKP has sold around 800 units at the project of 1,028 homes since starting sales on October 29.

Cheung Kong (0001) also introduced a fresh batch of 32 flats at Festival City 3 in Tai Wai for an average price of HK$7,560 psf – 6.8 percent lower than the HK$8,109 psf tag of the first batch.

Since November 26, nearly 200 flats in the 1,536-unit project have been sold.