New | Hong Kong developers raise perks to lure homebuyers
Property firms offer bigger discounts and low down payments as stock market turmoil and global economic uncertainty depress home sales
Hong Kong developers are sacrificing margins to offer sweeteners ranging from steeper discounts and low down payments to high commission rates to drum up sales as stock market volatility and increasing uncertainty in Chinese and global economies begin to take a toll on the real estate industry.
Some analysts said the property market was approaching a turning point after a seven-year rally in which Hong Kong home prices had increased more than 150 per cent despite a slew of cooling measures.
The latest sign of developers' growing difficulties is seen at Aspen Crest, a new project in Diamond Hill. Developer Far East Consortium International is providing an enticing second mortgage of 30 per cent, meaning homebuyers need to put down as little as 10 per cent of the property's cost.
Far East released 234 units for sale, but 99 remained unsold yesterday evening - a far cry from the go-go days when new projects would be sold out within hours.
The secondary market is reeling too. Centaline Property Agency reported the 10 largest residential estates in the city saw only two transactions at the weekend, down from four in the previous week.
Louis Chan Wing-kit, a managing director at Centaline Property Agency, said: "The incentives offered by developers for new flats has cut into investor interest in second-hand flats."