Midland Realty and mReferral Mortgage Brokerage Services have introduced three preferential mortgage packages for buyers of Kowloon Development’s (0034) 33 Clear Water Bay project on Thursday, featuring actual interest rates as low as 2.68 percent to spur home purchases.
The most competitive option under the newly unveiled plan allows buyers to secure a special Prime-based rate at 2.68 percent for up to three years. The plan subsequently reverts to a HIBOR-based rate as low as H+1.3 percent with a capped interest rate.
In addition, mReferral is offering a fixed-rate scheme locked at 2.93 percent for up to five years, alongside a deposit-linked H-mortgage capped at P-2 percent (where P = 5.25 percent) that allows borrowers to offset interest expenses using savings income. All three schemes offer a maximum tenure of 30 years and bank cash rebates.
"Banks have grown increasingly proactive in their mortgage business, introducing diversified mortgage plans to attract quality customers," said Kostka Cheung, chief operating officer of mReferral corporation (HK).
Cheung added that the 33 Clear Water Bay project holds strong capital appreciation potential, supported by excellent regional transport links and urban planning, which is expected to appeal strongly to end-users and investors alike.
"33 Clear Water Bay features its own large-scale shopping mall covering over 650,000 square feet and offers seamless connection to Choi Hung MTR station," Sammy Po Siu-ming, senior director of Midland Realty said.
He highlighted the strong rental proposition of the development, said that driven by keen rental demand, rental rates at the project are expected to exceed HK$60 per square foot, yielding an estimated return of around 3.5 percent.
Across the territory, Hong Kong’s primary private market recorded around 1,700 transactions in the first 27 days of October, reaching a five-month high and exceeding the 1,000-deal threshold for a third consecutive month, according to Midland Realty.
Total primary transaction value year-to-date has passed HK$208 billion across more than 16,500 deals, surpassing full-year figures from last year.
Kowloon dominated the market, accounting for nearly 48 percent of all new home sales with around 8,000 deals, data showed.
