Date
24 September 2017
Charles Chan  warns more foreclosed homes could be sold cheap if property prices fall 10 percent or more. Photo: HKEJ
Charles Chan warns more foreclosed homes could be sold cheap if property prices fall 10 percent or more. Photo: HKEJ

More foreclosures seen amid property market correction

Hong Kong could see more home foreclosures amid increased remortgage activity and a potential slump in the property market.

At least 20 transactions in the 22 days to early December had been remortgaged at least four times, the Hong Kong Economic Journal reports, citing Land Registry data.

One property that was bought with borrowed funds from financing companies in 2014 had been repossessed.

A foreclosed property in Tai Po, also bought in 2014, had been remortgaged three times to different financing companies. The property is on sale for HK$9.2 million. 

A government-subsidized 484 square foot apartment in Tuen Mun bought for HK$1.38 million in 2010 had been remortgaged 11 times before changing hands in November for HK$3.2 million, 6 percent below market prices.

Charles Chan, managing director of Savills Professional Services Greater China, warned that more foreclosed homes could be sold cheap if property prices fall 10 percent or more.

[Chinese version中文版]

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