Hong Kong property cooling rules make strong case for 'buyer beware'

With the introduction of a range of cooling measures including increased stamp duties, the age-old watchwords "buyer beware" have never rung more true for those seeking a home in Hong Kong, say property analysts.

"There are now so many cooling policies in the market that buyers often do not fully understand how they change the down payments they will have to make, and how big their monthly loan repayments will be," said Ivy Wong Mei-fung, managing director of Centaline Mortgage Broker.

"As a result. many are walking away from deals when they realise they have got their sums wrong."

The government's figures on sales of new homes show that 42 offers to buy have gone uncompleted since its website opened on April 29.

Agents warn that this is because the cooling measures have changed the arithmetic of calculating maximum loan amounts and therefore the size of the down payment buyers have to make and what their monthly loan repayments will be.

Data from the website shows that since June 29, 10 buyers walked away from offers they put in for flats at The Bayview in To Kwa Wan, forfeiting their deposits. There were also nine non-completed deals at Park Signature in Yuen Long, and eight at The Rise in Tsuen Wan.

"We are seeing more buyers walk away from the deals where the flats are being sold for HK$8 million or above," Wong said.