Hong Kong commercial property downturn to worsen amid tightening credit: agents
Commercial property prices in Hong Kong are likely to continue their downward spiral, as the market risks getting trapped in a “vicious cycle” of tighter bank lending and weakening demand, a property agency has warned. Banks in the city had adopted a more conservative approach towards approving mortgages for commercial properties over the past three years, introducing stricter approval standards and terms, said Eric Tso Tak-ming, chief vice-president at mReferral Mortgage Brokerage Services, at...
Tighter bank lending is further weakening demand for commercial property in Hong Kong, and could tip the market into a ‘vicious cycle’, agency warns
Commercial property prices in Hong Kong are likely to continue their downward spiral, as the market risks getting trapped in a “vicious cycle” of tighter bank lending and weakening demand, a property agency has warned.
Banks in the city had adopted a more conservative approach towards approving mortgages for commercial properties over the past three years, introducing stricter approval standards and terms, said Eric Tso Tak-ming, chief vice-president at mReferral Mortgage Brokerage Services, at a press conference on Tuesday.
Only about 20 per cent of commercial property transactions in Hong Kong this year have involved mortgage loans, a sharp decline compared with levels seen during the market’s peak in the early 2010s, according to Tso.
