Hong Kong builders come up with flexible payment plans to woo buyers as sales come to a halt
- Wheelock Properties offers deferred payment plans for flats in five of its developments in the city
- Analysts expect developers to start cutting prices of new projects when market slows down even further
As Hong Kong’s property market takes a turn for the worse, some developers are coming up with novel payment schemes to offload flats amid fears sentiment could sour further.
On Wednesday, Wheelock Properties announced a deferred payment plan along with steep discounts across five of its developments – Monterey, Capri, Napa, One Homantin and Island Residence. The scheme is effective from November 17 up to the end of the year.
Buyers can move into one of the 88 flats and villas that are being offered as part of the scheme after paying only a 10 per cent deposit, with the rest due in about 36 months. The standard practice calls for the payment to be completed within one month of the purchase.
Those who opt for this plan are required to pay another 10 per cent within 900 days of signing the sale and purchase agreement and finish payments on the remaining 80 per cent in about 36 months after signing the agreement.
“Developers probably expect home price to drop [further] and want to unload stock,” said Lung Siu-fung, analyst at China Merchants Securities International, adding that this shows their lack of confidence in the market’s prospects.
Prices of used homes in Hong Kong dropped 1.44 per cent in September, much faster than that in August, according to Rating and Valuation Department.
