Date
20 September 2017
A foreclosed unit in Greenfield Garden in Tsing Yi has been sold for 5 percent less than the asking price. Photo: HKEJ
A foreclosed unit in Greenfield Garden in Tsing Yi has been sold for 5 percent less than the asking price. Photo: HKEJ

Foreclosures seen hitting 10,000 this year amid falling prices

Banks are selling foreclosed properties at a sharp discount amid falling home prices.

Hong Kong could see up to 10,000 foreclosures this year in a worst-case scenario, the Hong Kong Economic Journal reports, citing investment services company Gale Well Group Ltd.

Chief executive Jacinto Wong said the number is in addition to 15,000 properties that have been seized by creditors.

At least seven homes have gone into foreclosure in the first week of the new year alone, the latest of which is a Sai Wan flat that has been mortgaged 13 times.

Banks are selling some of the foreclosed properties at up to 25 percent less than their appraised value.

A high-floor unit in Greenfield Garden in Tsing Yi went for HK$5.7 million (US$734,668), 5 percent lower than the asking price.

Tong warned that 10,000 foreclosed units could enter the market this year if home prices continue to fall.

That works out to an average of 30 foreclosures a day.

He said property owners are struggling to pay mortgage after pledging the assets to banks and other financial institutions when home prices were high.  

[Chinese version中文版]

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