Home financing war spills over to luxury housing sector
Kowloon Development joins other property firms in offering loans to speed sales amid dull market
A home financing war among developers is now spilling over from mass-market flats to luxury flats, with one developer offering loans of up to 90 per cent of the price to speed up sales in a dull market.
Mid-sized Kowloon Development yesterday offered buyers at its Cadogan project in Kennedy Town – where flats range from HK$10.68 million to HK$40 million – a down payment of just 10 per cent.
Under Hong Kong Monetary Authority rules, banks can offer loans of only up to 50 per cent for homes starting from HK$10 million.
The loan will be provided by Kowloon Development’s wholly owned financial institution, Kowloon Development Finance, which is beyond the HKMA’s ambit.
Kowloon Development’s 90 per cent home loan offer comes a day after Nan Fung Development and Henderson Land Development offered 80 per cent loans for their luxury residential projects at 80 Robinson Road in Mid-Levels and Harbour Pinnacle in Tsim Sha Tsui respectively.
Developers in the mass market have been offering aggressive loans of late.
Henderson Land recently joined the bandwagon, providing home loans of up to 85 per cent of the flat value through its finance arm for its Eltanin Square Mile project in Mong Kok, where prices range from HK$3 million to HK$7 million. That has helped Henderson sell 95 per cent of its first batch of 162 units at the project on the weekend.