Advertisement
Hong Kong property
Business
Raymond Chong
Raymond Chong

Concrete Analysis | Four tips for homebuyers catching a surprise revival in Hong Kong housing market

  • Property transactions spiked in June and July on expectations the pandemic had peaked, adding to a backlog of mortgage applications
  • Homebuyers should take precautions before signing the sales and purchase contracts and avoid potential pitfalls

Reading Time:3 minutes
Why you can trust SCMP
Potential buyers are starting to return to property launches in recent weeks, defying concerns about the third wave of coronavirus pandemic in Hong Kong. Photo: Nora Tam
Raymond Chong
Hong Kong’s property market is showing some resilience of late as buyers throng showrooms on weekends in spite of the threat of rising Covid-19 infections, with prices and buying sentiment on the ascent.
Advertisement
The upturn has come on the back brisk transactions in June and July amid expectations the Covid-19 pandemic has peaked. The bullish signs over the weekend could mean a backlog of mortgage applications and a slowdown in processing could get worse.

Buyers who need to apply for bank mortgages to finance their purchases should expect a lengthy delay in their mortgage applications. Most back-office staff at banks are required to work from home as precaution to help contain the coronavirus pandemic. Mortgage evaluation process will thus likely take longer than usual and this can cause anxieties for first-time borrowers.

A mortgage application normally takes two to three weeks to be processed but this time, homebuyers should expect this to stretch up to two months. This includes the time for getting the second approval from Hong Kong Mortgage Corporation (HKMC) in case they seek a higher loan-to-value ratio (LTV).

For first-time homebuyers, be it for new or existing homes, here are some guidance and tips to help ensure a speedy and successful mortgage application.

Advertisement
Advertisement