Hong Kong Mortgage Rule Easing Seen Doing Little to Lift Market
- Down payment reduced for some homes under construction
- Move comes as prices continue to be weighed by higher rates
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Hong Kong’s relaxation of mortgage rules for first-time buyers of homes under construction is unlikely to lift a property market that’s been burdened by high borrowing costs, according to analysts.
New rules allowing such homebuyers to put down smaller deposits will have a “negligible” impact on demand, said Citigroup Inc. analyst Ken Yeung. A potential increase in mortgage rates before year-end might dissuade buyers, Bloomberg Intelligence said.