a new “Policy Report” on October 16 that relaxing the cap on property prices under the insurance plan will immediately stimulate second-hand transactions
and will also attract buyers to buy into the market with a high percentage. According to Liu Yixiang, the director of the Financial Services and the Treasury’s latest reply to questions from members of the Legislative Council, one and a half months after the new measures came into effect, Hong Kong warrant companies approved a total of 1870 80% or more mortgage applications. In other words, an average of about 41 applications are approved each day, a three-fold increase from the average of about 11 applications per day before the measures came into effect. Ming Pao reporter Lin Shangmin
In addition, since the relaxation of the mortgage guarantee until November 30 this year, more than 1,700 applications have been approved, with a total amount of about 10 billion yuan
According to the data, 46 days after the announcement of the easing of the mortgage, the first time home buyers submitted mortgage applications with a maximum mortgage percentage of 80% or more, and 1870 mortgage applications were approved, of which 192 had a property price of 4 million yuan or less and 937 had a property price of more than 4 million To 6 million yuan, 578 cases have a property price of more than 6 million to 8 million yuan, and 163 cases have a property price of more than 8 million to 10 million yuan. According to the new measures, first home buyers who purchase properties under 8 million yuan can undertake up to 90% mortgages.
If compared with the figures before the effective date of the policy, 1870 related applications were approved in the above 46 days, that is, about 41 are involved every day. From January 1st to October 15th, that is, within 288 days, there were 3089 similar applications. Eighty percent or more of the applications for insurance are approved, that is, about 11 cases are approved per day on average. In other words, after the policy comes into effect, the average daily approval application is 3 times higher than before the effective date. In 2017 and 2018, the average number of relevant applications approved daily was approximately 21 and 12 respectively.
5,000 cases in the first November
It is worth mentioning that from this year to November 30, the Hong Kong Certificate Company has approved a total of 4,959 relevant applications, which is more than the 4,477 cases in the whole year of 2018, but compared with the 7,814 cases in the whole year of 2017, it is still Only 63% of the year. Liu Yixiang pointed out that more than 99% of the first-time home buyers applying for the insurance plan are Hong Kong residents, and Hong Kong Securities Insurance Co., Ltd. does not distinguish whether the applicant is a Hong Kong permanent resident.
Since Lin Zheng Yue’e announced that the ceiling for the first homeowner’s application for the maximum 90% mortgage price has been raised from 4 million yuan to 8 million yuan, some market participants have suggested that if the property price drops, first home buyers can bear negative assets at any time. The fluctuations are affected by many factors, and the company will review the effectiveness of the plan in due course.
Property prices in some large housing estates have retreated, and construction costs have fallen to the extent that they can apply for insurance coverage. Yang Wenjie, the chief district manager of Central Plains, said that Quarry Bay Kornhill recorded the first sale of this month. The lower floor has 12 rooms in Block K, with a 555 square foot saleable area and a two-bedroom king partition. After bargaining, it was finally sold for 9.628 million yuan, or 17,348 yuan per square foot. Similar units changed hands for 10.3 million yuan in August, and the transaction price was about 7% lower than the previous transaction. The new buyer intends to undertake mortgage insurance. Under the new measures, the above-mentioned units can guarantee mortgage insurance up to 80%. The original owner purchased it in December 2009 at 4.08 million yuan, with a book profit of 5.548 million yuan or 1.3 times.