Cheung Kong will make available up to HK$500 million worth of low-interest loans to buyers of Caribbean Coast in Tung Chung on Lantau Island in view of weak buying sentiment.
Caribbean Coast is expected to be the first big residential project to be put on sale following the terrorist attacks on the United States.
Cheung Kong executive director Justin Chiu Kwok-hung said the company aimed to launch the project next month and prospective buyers could apply for the subsidised loans until the end of the month.
The loan scheme follows a Government decision to offer subsidised loans to first-time home buyers and Home Ownership Scheme applicants. However, Cheung Kong's eligibility criteria and loan terms are more relaxed.
Cheung Kong would lend HK$600,000, or 25 per cent of the property prices, in the form of second mortgages to those with a family income of less than HK$60,000 per month and total assets of HK$1.5 million.
The loans should be repaid in 10 to 30 years.
Borrowers need not repay interest or principal for the first three years. The interest rate being charged will be 3 per cent less than prime for the following three years.