Mainlanders fuel surge in property viewings

Centaline Property Agency said appointments for home viewings at the La Montagne project in Wong Chuk Hang by mainlanders surged, hitting 30, and that it expected the number to surpass 100 in the next one to two weeks.

The agency expects the border reopening to help boost sales of luxury homes priced at HK$10 million or above to 1,500 in the primary market this month.

La Montagne will be the focus, with most of 88 units in the first price list costing more than HK$10 million after discounts. The new project atop the Wong Chuk Hang MTR Station is jointly developed by Kerry Properties (0683), Sino Land (0083), Swire Properties (1972), and MTR Corp (0066).

To better serve buyers interested in La Montagne, Centaline opened yesterday its first dedicated store in Wong Chuk Hang.

The easing of mortgage rules will also stimulate home sales, said Louis Chan Wing-kit, Asia-Pacific vice chairman of the residential division at Centaline.

Chan said home viewing appointments surged 30 percent weekly in both primary and secondary markets over the past weekend,

The Hong Kong Monetary Authority on Friday lifted the maximum loan-to-value ratio for self-use residential properties below HK$15 million to 70 percent, and 60 percent for those that are valued from HK$15 million to HK$30 million.

Chan added that nearly all units in the first price list of La Montagne will benefit from the easing, as only one is priced above HK$30 million.

Morris Lo, sales and marketing director at Kerry Real Estate Agency, said it will study whether to raise prices at La Montagne in coming lists now that mortgage rules have been eased. He said on Friday there was room for an increase in prices.

Lo added that Kerry will put more new homes on the market in the near term, and is likely to start sales as early as this weekend.

In Kai Tak, Henley Park, developed by Henderson Land (0012), received over 8,384 checks for the second batch of 82 units, marking a 101-time oversubscription. Sales of the second batch start today.

Henderson also said the relaxation in mortgage limits has improved sentiment, with its One Innovale project in Fan Ling seeing three deals by tender yesterday, bringing in HK$18.5 million.

Some smaller banks in Hong Kong were said to have increased the cap on interest rates for mortgage plans based on the Hong Kong interbank offered rate to the same as the prime rate, leading to an actual rate of 5.875 percent, and offering no cash rebate.