Hong Kong, Chinese developers hope to piggyback on robust secondary property market sales, to release more than 1,000 units

By Sandy Li sandy.li@scmp.com / https://www.scmp.com/business/article/3034456/hong-kong-chinese-developers-hope-piggyback-robust-secondary-property?utm_medium=partner&utm_campaign=contentexchange&utm_source=EdgeProp | October 29, 2019 12:24 PM SGT
Hong Kong and mainland Chinese property developers are hoping to piggyback on strong activity in the city's secondary market and will release more than 1,000 units in the coming weeks.
The sales of lived-in homes jumped more than threefold on the first weekend after Hong Kong leader Carrie Lam Cheng Yuet-ngor announced a relaxation in mortgage rules on October 16. According to the changes, homebuyers can avail loans equalling 90 per cent of the value of flats worth up to HK$8 million (US$1.02 million), up from 60 per cent previously, as well as loans equalling 80 per cent of the value of flats worth up to HK$10 million, from 50 per cent previously.
The easing in mortgage lending applies only to completed residential flats, but developers are hoping to capitalise on positive sentiment in the market as they seek to shore up sales.
"If I was a developer, I too would squeeze in to sell in a more robust market," said Keith Chang, senior director of realty investment at Savills. He added that the soon-to-be implemented vacancy tax would also contribute to a rash of property launches.
"Home seekers will quicken their buying decision in an upbeat [market]," said Joseph Tsang, chairman of JLL Hong Kong. He said developers also needed to catch up with their year-end sales targets.
"Spending has been severely hurt by more than four months of social unrest. Builders have to sell fast, as they will benefit from pent-up demand," he said.
CK Asset Holdings, China Evergrande Group, Sun Hung Kai Properties, Billion Development and Project Management, China Overseas Land & Investment, Grand Ming Group Holdings and HKR International have all sped up launches to take advantage of an improved market sentiment.
CK Asset will release another round of 176 units at its Seaside Sonata development in Cheung Sha Wan on Friday, October 25, while Billion Development will offer 99 units at The Aurora in Tsuen Wan the following Saturday. China Evergrande's 325 units at Emerald Bay in Tuen Mun " its first residential project in Hong Kong " will be released the following...