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South China Morning Post

Greater Bay Area: Hong Kongers see banks pushing up demand for housing as banks hang cheaper loans, easier cross-border payment facilities

China’s largest asset lender local unit, China Industrial and Commercial Bank (Asia), has seen demand from local buyers for mortgage lending for homes in the Bay Area, with the mainland and Hong Kong economies growing annually in 2021. Do you have questions about the biggest topics and trends in the world? Get answers at SCMP Knowledge, a new platform for curated content with explanations, FAQs, analytics and infographics from our award-winning team. Banks increased the number of such applications by a factor of 10 in 2020 compared to 2019, Leung added. Zhuhai and Zhongshan were Hong Kongers’ favorite picks, accounting for 85% of the application. According to the Centaline Property Agency, housing transactions in the Greater Bay Area involving Hong Kongers fell 46% in 2020 to 161,000 due to strict border restrictions in the Covid-19 pandemic. With expanded vaccination programs and relaxed travel restrictions, this year should increase by about 25% to over 200,000. The Greater Bay Area covers nine cities in Hong Kong, Macau and southern Guangdong. Home prices in mainland cities are relatively low, and cross-border transportation links such as the Hong Kong-Zhuhai-Macau Bridge and Hong Kong-Shenzhen high-speed rail have been improved, reducing travel time and making homes more attractive. It was. House prices in the Greater Bay Area continue to rise, with five cities expected to hit record highs in March, according to Centaline. Shenzhen, one of the five, added that it broke the price record for 19 consecutive months. ICBC (Asia) offers mortgages that give Hong Kong buyers the option to pay down payments and monthly installments in local dollars without visiting mainland branches, bothering cross-border remittances and foreign exchange fluctuations. Avoid the problem. The down payment may be transferred through a bank to the applicant’s RMB-denominated account of the same name in mainland China and then paid to the home developer. Without this arrangement, homebuyers would have to open a mainland bank account, borrow a mortgage from a mainland lender, and transfer home payments from Hong Kong. According to Leung, the ICBC (Asia) plan limits the amount of loans to HK $ 10 million at 3.25% per year, with a maximum loan-to-value ratio of 60% and a maximum repayment period of 30 years. Other mainland lenders in Hong Kong, such as China CITIC Bank, Bank of China and China Construction Bank, offer similar credit lines. Kostka Cheung, Chief Operating Officer of mReferral Mortgage Brokerage Services, said: “This is the lowest interest rate available on the market.” Potential buyers at Leading New Wave’s sales center by Nakayama’s Polyproperty and Country Gardens. Photo: Pearl Liu alt = Potential buyer at Leading New Wave sales center by Nakayama Poly Property and Country Garden. Photo: Pearl Liu> Based on these terms, according to mReferral, a flat cost of HK $ 5 million will require a monthly repayment of HK $ 13,056. According to Centaline’s list, for HK $ 5 million, you can buy an apartment with a total floor area of ​​1,141 square feet (106 square meters) with three rooms in the northeastern part of Longgang District, Shenzhen. In total, I only bought a 354 sq ft apartment at Kweilin House, a 41-year-old development in central Tsuen Wan. Midland China says that about 70% of customers buying mainland real estate will apply for a mortgage instead of paying the full amount as local banks have begun offering mortgages for mainland real estate to Hong Kong investors. I expect to choose. “Given convenience and low interest rates, I think more buyers will choose to take out a mortgage from a local bank,” said Anitawon, assistant general manager of Hong Kong-based Greater Bay Area Sales. Stated. Marketing in Midland. This article was originally published in the South China Morning Post (SCMP). This is the most authoritative voice that has reported on China and Asia for over a century. For more SCMP stories, explore the SCMP app or visit SCMP’s Facebook and Twitter pages. Copyright © 2021 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2021. South China Morning Post Publishers Ltd. All rights reserved.