- 120% mortgage.
- A buy one, get one free deal on covered parking spaces.
- A 20% discount on properties that will be ready in 2018.
Answer:
Sun Hung Kai Properties is offering mortgages worth up to 120% of a home’s value at one of its projects. While generous, this is not quite as mad as it sounds, since buyers must already own another property pledged as security. Hong Kong has retained relatively strict macro-prudential controls over property lending, certainly compared to the standards that were applied in the US and UK in the pre-2008 crisis property boom. Still, property prices in Hong Kong have fallen -13% since September 2015 when they peaked, and developers are growing increasingly desperate to offload inventory as prices seem set to keep sliding.
[Source: Gavekal Research – June 17, 2016 – reproduced by kind permission of Gavekal Research]
