The number of home foreclosures in Hong Kong has jumped to a 13-year high with the economy heading south, new data showed yesterday.
The news came as the Hong Kong Association of Banks said that customers can now use the interbank payment system for mortgage refinancing transactions.
Data from Centaline Property showed that the number of properties offered for sale at auction reached 226 as of November 4, marking a 13-year high following 249 in April 2009.
The figure is also 82 percent higher than the 124 recorded a year ago.
Moreover, the number of existing foreclosed homes reached 70 percent of those during the financial crisis, when the number of homes to be auctioned jumped to 316 in December 2008.
The rise came as several property owners failed to continue mortgage loan repayments amid a fall in home prices, leading to their homes being auctioned.
Among the total number of foreclosed homes, residential units reported a 6 percent monthly increase to 187 while small and medium-sized properties with a mortgage as high as 90 percent and priced at HK$10 million or below accounted for 133 or 71 percent of them.
Meanwhile, the HKAB announced it will include direct real-time electronic fund transfer as an additional payment option for residential mortgage refinancing, which might be more efficient and help avoid delays compared to existing methods.
Currently, the mortgage loan proceeds need to go through a law firm for custody and subsequent issuance of solicitor's cheque for repayment.
The new arrangement, which is endorsed by the Hong Kong Monetary Authority, covers refinancing cases for residential properties, including residential car-parking spaces.
Data from mortgage consultant mReferral and the HKMA showed amount of mortgage refinancing for the first nine months climbed 24.5 percent yearly to HK$94.31 billion and the number rose 16.7 percent to 21,054 from a year ago.
Moreover, the number of refinancing cases accounted for 35.3 percent of new loans approved in September, a new high in three years.
Separately, Pano Harbour in Kai Tak, developed by China Resources Land (Overseas) and Poly Property (0119), expects to release the sale arrangement of the first batch this week and start sales within this month, while Henderson Land Development (0012) said the 56 units in the first price list of Baker Circle - Euston in Hung Hom were 2.8 times oversubscribed as of 7pm yesterday.
