Advertisement
Are foreclosed homes the answer for Hongkongers priced out of the world’s most expensive property market?
- Foreclosed properties, sometimes discounted by up to 20 per cent, are rising in number as the property market tanks
- The discounts, however, do come with potential risks that could increase the overall cost, say property analysts
Reading Time:3 minutes
Why you can trust SCMP
2
Foreclosed properties, sometimes discounted by up to 20 per cent, are rising in number and may offer bargains to Hongkongers priced out of the world’s most expensive housing market.
The discounts, however, do come with potential risks that could increase the overall cost, market insiders said.
The number of foreclosed properties – those seized by the bank after the owner has failed to keep up mortgage payments – has been about 20 per cent higher in the last two or three months as “sentiment in the housing market soured significantly” because of rising interest rates, said Alger Cheng, general manager at the auction department of CS Auctioneers.
Advertisement
The Hong Kong Monetary Authority (HKMA) in mid-December raised the city’s base rate by 50 basis points to 4.75 per cent, close to the 5 per cent record last seen in January 2008.
01:01
Chinese policeman props up cable with broomstick to keep traffic flowing
Chinese policeman props up cable with broomstick to keep traffic flowing
It is expected there will be interest rate hikes in the first quarter of 2023.
Advertisement
Advertisement
Select Voice
Choose your listening speed
Get through articles 2x faster
1.25x
250 WPM
Slow
Average
Fast
1.25x