Big banks cut rebates for transferring mortgages

Business | Stella Zhai 28 Apr 2020

The Hong Kong and Shanghai Banking Corporation and Hang Seng Bank (0012) halved the cash rebate by 50 basis points to 0.5 percent for customers transferring their mortgages worth HK$10 million or below to the banks.

Hang Seng Bank has already lowered the cash rebate rate for new mortgage loans below HK$10 million to as much as 1 percent, while that for new mortgages below HK$3 million was cut to 0.5 percent.

The city recorded zero construction for private homes in the first two months this year, the first time in at least 20 years, data from the Buildings Department showed.

The department had approved 13 construction plans in February but hadn't received notification of commencement. Among them, a site on The Peak was approved for three three-story luxury projects with a total floor area of 25,818 square feet.

In the secondary market, a home seller at Flora Plaza, Fan Ling, changed his mind and compensated the buyer, getting back the property for self-use. The deal was made at HK$4.95 million, or HK$13,378 per sq ft.

A mainland vendor suffered a loss of about HK$3.2 million after selling a 1,130-sq-ft flat at The HarbourSide at Kowloon Station for HK$39.8 million, or HK$35,221 per sq ft, after HK$15 million was slashed from the initial asking price.

The Hong Kong Interbank Offered Rate saw a pull-back yesterday. The one-month Hibor, which is linked to the mortgage rate, fell to 1.46 percent.

In other news, CK Asset (1113) cut the minimum monthly rent of the Harbour Plaza hotel in North Point by 30 percent to HK$10,800.

Wharf (0004) expects to record a net loss in the first half, compared to a net profit of HK$2.45 billion for the same period last year, as the Covid-19 outbreak caused severe disruptions to its investment properties and development properties.

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