The media have started reporting about record prices achieved for properties in Hong Kong’s secondary housing market, as more and more mainland investors invest in the SAR. Other than this, there was no major local news.
The local housing market has nearly recovered fully after the 15-20 percent drop in prices since last October. Morgan Stanley favors Sun Hun Kai Properties (0016), Wharf (0004) and Link REIT (0823), while Goldman Sachs likes Cheung Kong Property (1113) and Swire Properties (1972).
Value Partners (0806) is one of the most successful local fund management firms over the past 20 years. Chairman Cheah Cheng-hye said now is the best time to buy Chinese stocks.
Hong Kong Credit Corporation yesterday said it is launching two new mortgage plans with Centaline Mortgage Broker.
The broker is a subsidiary of Centaline Property. Under the first plan, up to 90 percent for homes worth less than HK$8 million and as much as 80 percent for units priced less than HK$12 million can be loaned.
In the second plan, a mortgage of up to 80 percent of the home price can be given without conducting a pressure test. The test measures a borrower’s ability to repay the loan on time. Repayment period for both plans is 30 years, with an interest rate of P-2 percent and P-1 percent respectively. The prime rate now stands at 5.25 percent.
“We launched these mortgage plans to attract more first-time buyers and those who would like to change homes,” said said Ivy Wong Mei-feng, managing director of Centaline Mortgage Broker.