Real Estate Developers Association chairman Stewart Leung Chi-kin has warned that banks would demand early repayment of mortgage loans if home prices dive 20 percent further.
Leung called on the government to hesitate no more in removing housing cooling measures that have remained, saying he had discussed this with Financial Secretary Paul Chan Mo-po at a recent meeting.
Leung, also chairman of Wheelock Properties, blamed weak economic activities for the existing major challenge that is hurting the local estate sector as a result.
He said all “spicy measures” must be scrapped when the financial budget is announced next week. He said about 2 million home owners could suffer if home prices continue to fall, warning banks would ask borrowers to repay mortgage loans early.
Since hitting a peak in 2021, the city’s home prices have fallen by more than 20 percent. The number of residential mortgages in negative equity – where the loan size is more than the home value – exceeded 25,000 cases in the last quarter, the most since September 2004.
The government moved to ease some of the market restrictions and stamp duties last October, but stopped short of lifting them all. The real estate sector has since kept calling for further removal of the limits to boost market sentiment.
Nonetheless, the REDA chairman believed fundamentals of the property market are still sound in the face of anticipated interest rate cuts and a low local jobless rate.
Wheelock Properties managing director Ricky Wong Kwong-yiu said the company plans to put five new projects up for sale to offer over 2,200 flats including about 1,300 in Phase 12 of Lohas Park in Tseung Kwan O, projects in Kai Tai and Wanchai, and luxury houses on Plantation Road on The Peak, riding on last year satisfactory sales.
Meanwhile, CK Asset (1113) executive director Justin Chiu Kwok-hung expects policy stimuli to be released next week to boost the city’s economic recovery as he expressed confidence in the market performance this year. CK Asset plans to launch three new projects in 2024, naming one of them – Phase 3 of The Southside in Wong Chuk Hang – Blue Coast which will provide 642 units.
Henderson Land Development (0012) said phase one of its residential project on Berwick Street in Shek Kip Mei will be launched for sale next month, involving 714 units.
In Yuen Long, a shopping mall at Sun Hung Kai Properties’ (0016) Yoho Hub is named Yoho Mix that will be completed in the second quarter.
Instead of waiting for the coming budget as most developers did, Kerry Properties (0683) put 18 units at The Aster in Happy Valley up for sale yesterday, priced from HK$15.33 million after discounts.
Hong Kong United Times丨香港聯合時報丨HKUT 