Hong Kong homebuyers unfazed by tighter mortgage rules as 14,000 register for Chueng Kong project

Cheung Kong Property Holdings’ Ocean Pride development in Tsuen Wan has become the most sought after project since August last year after it registered 14,000 prospective buyers who were unfazed by the Hong Kong banking regulator’s moves to tighten mortgage lending for investors.

Sun Hung Kai Properties registered 16,700 prospective buyers for the phase one development of Grand Yoho in Yuen Long when it was launched in August in 2016.

Cheung Kong will offer 496 units at Ocean Pride for sale on Friday morning.

Last Friday, the Hong Kong Monetary Authority ordered commercial banks to allocate a larger risk weighting towards their assessment of credit worthiness, while cutting the amount of allowable loans on residential and commercial properties.

The size of loans allowed for residential property less than HK$10 million in value was also cut to 50 per cent of their value for borrowers with outstanding mortgages, from the previous 60 per cent, while lending to homes exceeding HK$10 million was cut to 40 per cent from 50 per cent.

In addition, companies that are buying homes for corporate use had their loan amounts cut to 40 per cent of value, from 50 per cent.