Fixed-rate loans debut as Hibor hits 2-year lowBusiness | Kevin Xu 6 May 2020
The Hong Kong Mortgage Corporation is set to offer 10-year fixed-rate mortgage loans at 2.55 percent per annum, down from 2.75 percent previously, while the one-month Hong Kong Interbank Offered Rate dropped to a two-year low yesterday.
The HKMC will start receiving applications from tomorrow, with a 10-year loan offered at an annual interest rate of 2.55 percent, a 15-year loan at 2.65 percent, and a 20-year loan at 2.75 percent.
This came as the one-month Hibor, which is linked to the mortgage rate, dropped by nearly 20 basis points to 0.86339 percent, bringing Hibor-based mortgage interest rates to as low as 2.1 percent per year.
The Hibor-based mortgage interest rates range between Hibor plus 1.24 percent and 1.3 percent per annum, while the best lending rate-based interest rate cap is mainly 2.5 percent per annum, Centaline Mortgage Broker managing director Ivy Wong Mei-fung said.
The ratio of new mortgage loans, priced with reference to the Hibor, increased from 87.1 percent in February to 88.7 percent in March, according to the Hong Kong Monetary Authority.
Meanwhile, in the primary market, between January 23 and May 1, only 2,103 flats in new projects were sold, down 49 percent from the previous 100 days, according to real estate agency Qfang.com.
Wing Tai Properties (0369) will open show flats at Oma by the Sea in Tuen Mun this week, while CK Asset (1113) has sold 464 flats at Seaside Sonata in Sham Shui Po.
In Ma On Shan, CITIC Pacific sold a 2,677-square-feet special unit at The Entrance for HK$84.8 million, or HK$31,677 per sq ft.
In the secondary market, Centaline Property Agency recorded 23 transactions in Tung Chung this month.
A 1,480-sq-ft flat at Tung Chung Crescent changed hands for HK$22.6 million, or HK$15,270 per sq ft, after HK$3.4 million was slashed from the initial asking price.
The number of property transactions rose 6.8 percent month-on-month to 4,866 in April.
And in the rentals market, a 2,790-sq-ft luxury home at Regalia Bay in Stanley was rented for HK$86,000 per month, or HK$30 per sq ft, after HK$14,000 was cut from the initial asking rent.