{"id":26109,"date":"2021-12-02T06:00:07","date_gmt":"2021-12-01T23:00:07","guid":{"rendered":"https:\/\/www.asiapropertyawards.com\/?p=26109"},"modified":"2021-12-01T22:06:13","modified_gmt":"2021-12-01T15:06:13","slug":"hong-kong-homebuyers-shift-to-small-flats-after-relaxed-mortgage","status":"publish","type":"post","link":"https:\/\/www.asiapropertyawards.com\/en\/hong-kong-homebuyers-shift-to-small-flats-after-relaxed-mortgage\/","title":{"rendered":"Hong Kong homebuyers shift to small flats after relaxed mortgage"},"content":{"rendered":"

The price growth of mid-sized\u00a0flats outperformed Class A properties and the overall market<\/span>\u00a0<\/span><\/p>\n

\"\"
According to analysts from JLL, relaxed lending guidelines have resulted in a price increase of mid-sized residential flats over the past 21 months.\u00a0nuu_jeed\/Shutterstock<\/figcaption><\/figure>\n

In Hong Kong, homebuyers have shifted their preferences towards small flats due to the easing of mortgage financing schemes, reported Hong Kong Business<\/a>.\u00a0<\/span>\u00a0<\/span><\/p>\n

Under the relaxed mortgage financing schemes, the cap for loan-to-value (LTV) ratios for units with values below HKD8 million (previously HKD4 million) was set at 90 percent and 80 percent for units with values between HKD8 million and HKD10 million (previously capped at HKD6 million) in 2019.<\/span>\u00a0<\/span><\/p>\n

According to analysts from JLL, relaxed lending guidelines\u00a0have\u00a0resulted in a price increase of mid-sized residential flats over the past 21 months.\u00a0<\/span>\u00a0<\/span><\/p>\n

JLL\u2019s Residential Sales Market Monitor indicates that the price of Class B\u00a0properties\u00a0increased to 4.7 percent, while Class\u00a0C\u00a0\u00a0properties\u00a0rose to 5.8 percent following borrowers\u2019 increased mortgage entitlements.\u00a0<\/span>\u00a0<\/span><\/p>\n

Additionally, the price growth of mid-sized flats has surpassed Class A properties (two percent) and the overall market (2.9 percent).\u00a0<\/span>\u00a0<\/span><\/p>\n

Norry Lee, senior director of projects strategy and consultancy department at Hong Kong JLL, said the eased lending guidelines will shift homebuyers\u2019 focus to small units \u201cwhere the lump sums are able to fit into the LTV ratio cap.”<\/span>\u00a0<\/span><\/p>\n

More: Survey shows \u201cwait-and-see\u201d attitude among Hong Kong homebuyers<\/strong><\/a><\/p>\n

\u201cIt is healthier for the market if the progressive ladder of LTV ratio is smoothed out, allowing properties above HKD10\u00a0million\u00a0a higher LTV ratio of say 70\u00a0percent\u00a0for HKD10\u00a0million\u00a0to HKD12\u00a0million\u00a0units and so forth. Facilitating upgrading will eventually help release more units in the secondary market and re-establish the housing ladder,” he added.<\/span>\u00a0<\/span><\/p>\n

On top of this preference shift, the lending scheme also \u2018significantly changed developers’ building strategy, according to Nelson Wong, head of research at JLL in Greater China.<\/span>\u00a0<\/span><\/p>\n

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The Property Report editors wrote this article. For more information, email:\u00a0propertyreport@propertyguru.com<\/a>.<\/em><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The price growth of mid-sized\u00a0flats outperformed Class A properties and the overall market\u00a0<\/p>\n","protected":false},"author":12,"featured_media":26110,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[92,1],"tags":[973,171,551,512],"class_list":["post-26109","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-property-report","tag-homebuyers","tag-hong-kong","tag-mortgage","tag-residential","news_country-hongkong","news_author-property-report"],"acf":[],"yoast_head":"\nHong Kong homebuyers shift to small flats after relaxed mortgage | Asia Property Awards<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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