After the recent increase in mortgage rates, the real estate market in Hong Kong is more favourably disposed towards buyers. This is because real estate developers and banks are offering several incentives for property buyers alike. Several real estate developers and banks are now offering discounts and cash rebates in the aftermath of the increase in mortgage rates. For instance, CMB Wing Lung Bank and BOC Hong Kong (Holdings) are currently offering rebates going up to 2% of the value of the loan in case of new mortgages for homes as per reports.
Even Citigroup has reportedly reduced the cap by 10 basis points for the Hibor-linked mortgage rates. This comes after lenders in Hong Kong hiked best lending rates for the very first time in 12 years. This ended the previous low-rate regime that fuelled a huge boom in the property market, making Hong Kong one of the world’s costliest cities to purchase homes. Several real estate developers are also offering perks to buyers. Lai Sun Development Co, for example, has reduced prices of housing units at the Monti project by a whopping 10% and buyers are getting HK$120, 000 worth of furniture vouchers as well.
In another instance, Vanke Property in Hong Kong is offering mortgages which are lower than market rates by 10-20 basis points to buyers for its Le Pont project in the New Territories. There are also cash rebates up to 1.95% of the mortgage amount. Developers are attempting to shore up sales volumes ahead of the impending vacancy tax that will lead to penalties being imposed on realty companies for holding onto vacant housing units. For several buyers, this is the best time to buy property by cashing in on the benefits being offered by banks and realty developers alike.