Buy a luxury flat for only HK$1.2m downpayment? Henderson Land’s 95pc home mortgage scheme offered at Mid-Levels project
Henderson Land’s financing package likely the most aggressive on offer, according to one analyst
A luxury residential project in West Mid-Levels will only require buyers at presale to put down a 5 per cent initial deposit, or HK$1.2 million, for a home worth HK$24 million.
To drum up sales, Henderson Land Development is providing first mortgages for buyers of the Wellesley luxury development of up to 95 per cent of the flat value, according to a company release Tuesday. The project is due to be completed in October 2018.
The aggressive financing scheme highlights the extreme measures undertaken by developers to speed up sales at a time of slackening demand as banks tighten their lending policies to prevent a property bubble.
“It could be the highest loan-to-value ratio being provided by a developer for the luxury residential project for the past three or four years,” said Sammy Po, chief executive at Midland Realty’s residential department.
At present, most developers provide first mortgages of 80 to 85 per cent of the value of a home. Kowloon Development offered an aggressive package last year, raising the home loan ratio to 95 per cent for its small home development, Upper East, in Hung Hom.