Housing policy cushions Hong Kong’s property slump, adding US$3 billion to wealth of city’s six richest real estate tycoons
- Government’s effort to boost home ownership is likely to unleash pent-up demand and lead to an earlier-than-expected home price recovery, says Citibank property analyst Ken Yeung
- The increase in the mortgage cap opens up a world of options for buyers, says Louis Chan of Centaline Property Agency
The Hong Kong government’s relaxation of mortgage payment rules for the first time in nine years would help spur sales of lived-in homes by as much as 30 per cent in the quarter ending in December, putting a cushion under the slump in the city’s real estate sales.
“Hong Kong government’s effort at boosting home ownership by introducing several new initiatives are likely to unleash pent-up demand and drive an earlier-than-expected home price recovery,” said Citibank’s property analyst Ken Yeung, who estimated that third-quarter sales had declined by 5 per cent.
The unexpected incentive came at a fortuitous time for Sun Hung Kai Properties (SHKP) and CK Asset Holdings, which offered a combined 453 apartments for sale a day after Lam’s address, the first time since 2015 for the city’s two largest property developers to compete head to head.
CK Asset, the flagship company of Hong Kong’s wealthiest man Li Ka-shing, sold 110 flats out of 218 units on offer at the Seaside Sonata project in Sham Shui Po. SHKP, controlled by the Kwok family, sold 93 flats out of 235 units at the Cullinan West III complex, in the same neighbourhood.