New | Hong Kong developer offers buyers special payment scheme to boost sales

An 11 per cent price discount and no interest or principal repayment for two and a half years on second mortgages. That is what Sun Hung Kai Properties is offering to entice buyers for its new project in Tung Chung on Lantau Island.

The developer's special payment scheme was announced after Hong Kong shares closed down 5.17 per cent on Monday, finishing their seventh day of losses at a 15-month low after jitters over the mainland economy sent world stock markets tumbling.

"Previously, developers would adopt such financing schemes when market sentiment turned sour. I have not seen such schemes in recent years," said Sammy Po, chief executive of Midland Realty's residential department.

The slump in global stock markets is expected to prompt home seekers to take a wait-and-see approach rather than commit to new investments.

SHKP on Monday released the first batch of 188 units at phase two of Century Link development in Tung Chung. With discounts of up to 11 per cent, the cheapest flat, a 378 square foot unit, will cost HK$3.82 million, or HK$10,119 per square foot. The most expensive will be a 645 sq ft flat costing HK$7.65 million.

Buyers who opt for the "First 30 months Payment Holiday Second Mortgage Loan" scheme will receive up to 15 per cent home loans on top of the bank's 60 per cent loan ceiling for flats less than HK$7 million. Successful applicants will receive from the developer a cash rebate equivalent to the total repayment amount of 30 months of the second mortgage.