Mortgage insurance plan proves popular

Business | Winnie Lee 14 Oct 2020

More than 30 percent of home-buyers have used the mortgage insurance program, and the registration of secondary residential properties worth between HK$6 million and $10 million surged 48 percent year-on-year in the first nine months, Referral Mortgage Brokerage Services said.

Chief Executive Carrie Lam Cheng Yuet-ngor announced an increase in the mortgage cap for first time homebuyers in last year's policy address. The value of properties eligible for the 90 percent loan to value ratio was doubled from HK$4 million to HK$8 million , under the mortgage insurance program. The loans drawn down under the program accounted for more than 30 percent of the total mortgage loans in July and August, a record high.

Meanwhile, in the secondary market, a 701-square-foot flat at Taikoo Shing in Quarry Bay fetched HK$13.5 million on Monday after HK$480,000 was cut from the original asking price.

And in Lam Tin, a 720-sq-ft flat at Sceneway Garden changed hands for HK$14.05 million, a two-year high.

Midland Realty expects new flat sales to rebound to 6,000 units in the fourth quarter.

In the primary market, Metallurgical Corporation of China (1618) will offer 54 flats at L'Aquatique in Tsuen Wan West for sale this Saturday, including 34 canceled bookings.

In other news, the average rents of private residential units at 10 major estates fell 1.2 percent month-on-month to HK$34 per sq ft in September, according to Centaline Property Agency.

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