Hong Kong january property news

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Hong Kong january property news

Year of the Dragon or Year of the Landlord?!
 
It's set to be a big year in the rental market in HK!
With people finding it difficult to afford the down-payment even for smaller properties at the lower end of the scale. As a result of the LTV ratio guidelines in place for the Hong Kong mortgage market to follow. For example, 30% as a down-payment is required for properties valued below HK$7 million because the 70% LTV ratio guideline is in place, with the maximum loan amount capped at HK$4.2 million. Couple this with the current uncertainty in the global markets, with the reporting of job cuts becoming an almost daily occurence: means that more and more people are failing to get on the property ladder and are remaining in the rental market.
 
Whilst bearing in mind, HKR's December news release, in which we wrote about the prevailing low interest rates, contributing to landlords reluctance to lower their price points. This being one such rationale for them renting their properties out for a healthy rental return instead of selling.
 
With both sectors fuelling the other, this trend is set to continue in the Year of the Dragon! Here at HKR we have seen a growing number of units shifting from being "for sale" status to "leased" or "sale with lease". Which depending on the circumstances will make it more difficult to sell.
 
If you are looking for a place to rent or if you are at your break-clause stage and would like a market overview, call Hong Kong Realty Ltd now!`

Hong Kong Realty, Jan 18, 2011

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