Date
26 July 2017
Property developers in Hong Kong are offering rebates and hidden discounts to shore up sales. Photo: Bloomberg
Property developers in Hong Kong are offering rebates and hidden discounts to shore up sales. Photo: Bloomberg

HK developers offer hidden discounts to boost sales

Hong Kong’s property developers are offering a raft of rebates and hidden discounts to keep sales buoyant amid fears of a slowdown in the sector.

Kowloon Development Co., for instance, is providing incentives that can reduce the purchase costs by as much as 14 percent for buyers of units at the firm’s Upper East project in Hung Hom, Bloomberg News reported.

Elsewhere, Cheung Kong Property and Henderson Land are offering inducements including stamp-tax rebates, first and second mortgages to keep buyers coming, the report said.

The strategy has helped the developers avoid outright price cuts.

Developers are under pressure to move stock in the expectation of an increase in supply of housing next year and fears that the slowdown in the secondary market will spill over into new-home sales.

“After 12 years of a bull market, Hong Kong property is at an inflection point,” Spencer Leung, a Hong Kong strategist at UBS Group, was quoted as saying.

“Property developers are trying hard not to paint a picture that things are going down.”

The last time Hong Kong saw such generous enticements was in 2003, when home prices nosedived in the wake of the SARS crisis

Chinachem Group, Henderson Land and Far East Consortium are among those said to be offering financing of up to 90 percent through associated companies.

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