2025-02-21 28Hse Editor
Sun Hung Kai Properties (0016) has taken the real estate market by surprise, releasing a new price list for 74 units at Park Yoho Napoli in Yuen Long. The units are being offered at an attractive average price of HK$13,765 per square foot post-discount.
In a bid to stay competitive in this year's bustling home sales environment, kicked off by Wang On Properties's Phoenext in Wong Tai Sin, the major developer has introduced discounts of up to 13 percent. Prices for this new batch of apartments range from HK$6.48 million to HK$20.15 million, with individual unit prices per square foot spanning from HK$12,967 to HK$19,913.
As developers vie for buyers in a cautious market, two local banks—Chong Hing Bank and Wing Lung Bank—have been reported to increase their cash rebate rates to as high as 2.2 percent to entice mortgage loan customers.
Chong Hing Bank is offering an attractive 2.2 percent cash rebate to mortgage borrowers taking out loans above HK$5 million. For loans exceeding HK$2 million and HK$3 million, rebates of 2 percent and 2.1 percent are available, respectively.
Similarly, Wing Lung Bank is targeting specific customer segments, such as mainland professionals, healthcare workers, and high-value loan borrowers exceeding HK$15 million, with actual interest rates at 3.625 percent, alongside 2 percent cash rebates.
Mortgage consultancy mReferral anticipates that these offers will be the exception rather than the rule, aimed at boosting the banks' mortgage portfolios but unlikely to shake the overall market, given their smaller market shares. They expect major banks to maintain their cautious approach in the face of declining property prices and a contracting mortgage sector.
Echoing this sentiment, Centaline Mortgage notes that despite a slight decline, interbank borrowing costs in Hong Kong remain steep, with the one-month Hong Kong interbank offered rate recently ticking down to 4.762 percent.
Adding to the cautious outlook, the Lands Department data revealed a sharp 52 percent annual drop in land premiums last year, totaling HK$19.76 billion—the lowest in three years. This significant decrease is attributed to the subdued property market dampening developers' enthusiasm for new projects, as evidenced by a meager HK$492 million income in the last quarter.
Like 1
