Mainland homebuyers offered low rate, rebates

A mainland bank in Hong Kong is said to be offering attractive mortgage rates and cash rebates to lure mainlanders looking to buy homes in the city, according to local media reports.

The move could help boost stamp duty revenues at a time when the market is gaining momentum.

Without naming the bank, the reports said it was offering a mortgage rate of 3.225 percent - the lowest in the city - and additional discounts for mainland customers to increase its market share.

The lowered rate could slash off HK$413 in repayments each month for a homebuyer who borrows HK$5 million with a 30-year term, compared with the lowest cap rate of 3.375 percent for the mortgage plan based on the Hong Kong Inter-bank offered rate.

The move comes when the market share of small and mid-sized banks slid 50 basis points monthly to 32.6 percent in January, further solidifying the dominance of four major local lenders.

Banks will offer various benefits, including lower mortgage rates and cash rebate, to attract new clients, said mortgage consultant mReferral.

Meanwhile, Hong Kong's stamp duty revenue plunged 40 percent month-on-month in January to HK$334 million even after the border reopened, data from the Inland Revenue Department showed.

While the number of cases involving stamp duties rose 8.3 percent monthly to 157 in January, buyer's stamp duty, which mainly targets investors from mainland China and companies in property purchases, fell 2.9 percent monthly to 34 transactions, a new low in three months.

But it is expected to rebound in the coming months.

Midland Realty said more mainland investors will come to Hong Kong after the full reopening of the border, though it might take time.

And more new homes are on the way.

Wheelock Properties said it will unveil the first batch of flats at Koko Rosso in Lam Tin, offering at least 80 units.

Sun Hung Kai Properties (0016) plans to release the first price list of Novo Land's phase 2B in Tuen Mun next week. The whole phase will offer 729 units.

Moreover, the Buildings Department approved eight building plans in December, including one by Swire Properties (1972) to build a three-storey single-family house on the Peak.

Separately, Swire Properties saw the occupancy rate in its Hong Kong office portfolio fall a percentage point to 96 percent but remain flat in its retail portfolio as of the end of last year compared to 12 months earlier.

CBRE anticipates investment demand for offices will remain weak this year due to the high vacancy rate and glut in the market, while China's reopening will boost the investment in retail property in Hong Kong.