High into the number of loans increased rapidly in the second half
In response to long-term high property prices in Hong Kong, many developers have provided high-yield mortgages to help buyers enter the market. According to the latest report from Bloomberg Research (Bloomberg), the developer’s high-volume mortgage growth is fast, based on long-term accounts receivable, Kerry Construction (0683) within six months, Double the increase, and that this will increase the risk of developers, in the face of buyers breach of contract will increase.
Which is related to the low leverage of the developer’s balance sheet
The report shows that the recent developers to provide high-yield mortgages to less profitable buyers and reduce the amount of the first installment will undoubtedly help to promote the sale of real estate, but it also increases the developer’s risk. Which found that Kerry’s long-term accounts receivable in the first half of this year as high as 31 billion yuan, 2.05 times more than six months ago, and equivalent to 3% of the net asset value. The long-term accounts receivable of the new land (0016) were nearly $ 5 billion, an increase of nearly 44% year-on-year. Developers are able to provide high-yield, Bloomberg Research believes that the developer’s balance sheet is at a low leverage and is capable of providing mortgages to buyers. But it also poses additional risk to the developer.
Previously, the management of the new site in the performance conference, said to provide buyers to the high number of mortgage loans accounted for less than 1% of total assets, and most of the loans within two years. Other developers’ relevant data can only be further estimated from the information contained in the annual report. According to the annual report of Shunhe Property (0083) and Cheung Kong (1113), the long-term accounts receivable related to the provision of customer mortgage services amounted to RMB1,836 million and RMB1,198 million respectively, increasing by 1.55 times and 2.8% The
This year, Hong Kong’s first-hand residential sales hit a 10-year high
The report shows that the first nine months of this year, developers have sold 14,300 units, up 22% over last year, and is expected to continue in the fourth quarter to actively push plate, Bloomberg study pointed out that developers actively launched high Mortgage to attract buyers this year, Hong Kong’s first-hand residential sales or a nearly 10-year high.
BOCOM International: the worst case only to recover the property resale
Biao Yin International Research Director Liu Yahan said that the industry generally to long-term accounts receivable or loans to measure the listed developers to provide high number of operations, and to the corresponding real estate sales to measure better. And whether the risks faced by developers will increase, it depends on the property market. In the worst case, the developer just resold the property and resold it. If the current high price of property is more difficult to attract buyers, the developers offer a high number of mortgages, but still worth doing.