IN a bid to boost sales of new flats, privately-run Nan Fung Development has made an unprecedented move to offer up to 100 per cent home loans for nine of its residential developments in the territory. Bankers and real estate agents said the new incentive would boost the sales of Nan Fung's residential projects but would not significantly affect the market price. Other developers are not expected to follow suit. The property developer introduced the preferential offer for residential developments in Tseung Kwan O, Tuen Mun, Kwai Chung, Shan Tin, Ma On Shan and the Peak. A spokesman for Nan Fung said they wanted to attract high income earners who may not have sufficient savings, or were not prepared to spend huge sums on down-payments for the territory's expensive flats. 'Hong Kong has many empty buildings, yet there are many people who want to buy for the first time but cannot afford the down-payment for flats, which are very expensive. 'The two need to be pulled closer together. 'Even if new buyers have saved enough, it's not enough by the time they pay because of high inflation,' he said. The offer will be arranged as long as buyers give proof of regular high income. Paul Selway-Swift, chairman of the Hong Hong Association of Banks, said Nan Fung Development's unprecedented move to offer 100 per cent mortgage loans would certainly affect banks' mortgage business. 'But it [the effect] really depends on how far developers are prepared to go and how much flats buyers they are prepared to take onto their books,' he said. However, he stressed that the mortgage offer would not push up property prices. 'If we are talking about one year ago when the property market was in the face of increases in asset value, . . . I would be concerned there would be some danger of pushing prices up too speedily,' he said. 'But in this environment, it's unlikely to be harmful to the property market.' He did not believe that many property developers could follow Nan Fung's example to provide such a preferential offer. His opinion was echoed by property agents who expected the move would boost the sales of the rest of Nan Fung's stocks, but they did not expect it to significantly affect the market. Victor Cheung, sales director at property agent Midland Realty thought it would not affect property prices and said it showed developers were becoming stronger to be able to offer such loans. 'It has been the worst year for developers because of a package of Government measures to cool down speculation. 'Developers are devising new incentives to increase sales so as to come to a point where they should have sold most of their stocks, and do not want to hold stocks until next year,' he said. Response has been positive at Nan Fung, although they could not gauge the number of potential new buyers. The new measure is in addition to other methods of payment - a 25 instalment payment without interest on new flats and a provision of a 90 per cent mortgage loan.