Everything about Landscope Christie's International Real Estate and the Hong Kong luxury property market
Interest rate movement has been dominating market sentiments in the last few months and it appears that it will continue to be a decisive factor in the near future. However, as we are entering the traditional competitive months for mortgage business, banks are stepping up sales campaigns to grab a bigger slice of this lucrative market.
HSBC has just announced that it will aggressively price mortgage rate at prime minus 2.75%, in an effort to regain its leading position in the mortgage market (the Bank of China Group overtook HSBC to become the largest market share holder last year). This is a bold move that will trigger a mortgage war for sure. Other banks are expected to follow suit by offering competitive packages. We will see more attractive incentives offered to buyers very soon.
Mortgage finance has always played a pivotal role in Hong Kong's property market. Aggressive lending usually result in more sale and purchase activities as buyers find the incentives are just too irresistible. Each time when banks are caught up in a headlock fight, it's the property buyers who get the sweets. This time, it will be no exception. With mortgage rate hovering at 5.0% to 5.5% these days, it is still considered reasonably low in its history. So the stage is set for a resurge of sales activities, as the economic outlook remains optimistic.
By Karen Xu