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Record prices of mid-sized Hong Kong flats driven by first-time buyers taking advantage of relaxed mortgage rules, say analysts
- Homes measuring between 431 and 752 sq ft soared to record-breaking prices in June as couples and young families snapped up second-hand units
- Among the most popular developments driving the price increases were Kingswood Villas in Tin Shui Wai, and City One Shatin in Sha Tin
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More first-time buyers have been piling in to Hong Kong’s property market, driving up the prices of mid-sized flats in out-of-town locations, according to analysts.
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Homes measuring between 431 sq ft and 752 sq ft soared to record-breaking prices in June as couples and young families snapped up second-hand units in areas like the New Territories, where their money goes a lot further than it does in the city.
Property agents said the prices had been driven higher by a relaxation of mortgage rules in 2019 allowing first-time buyers to borrow a much higher percentage of a flat’s value.
“The relaxation measure pushed more first-time homebuyers to enter the property market,” said Derek Chan, head of research at Ricacorp Properties. At the same time, more people were taking the opportunity to upgrade to larger units.
“This led to more people making use of the relaxation rules,” said Chan. “So people who previously bought units of 200 to 300 sq ft would perhaps purchase units of 400 to 500 sq ft instead.”
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Among the most popular residential developments driving the price increases were Kingswood Villas in Tin Shui Wai, City One Shatin in Sha Tin and Metro City in Tseung Kwan O, according to Peter Wong, director of research at Hong Kong Property Services (Agency).
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