Published: 8:30am, 27 Oct, 2015 Updated: 8:25am, 13 Jul, 2017
Hong Kong developers have been offering home finance schemes over from now to 2017 in an attmept to boost sales, however if home prices drop by 10% their offer will put hundreds of "marginal" buyers in danger of falling into negative equity. Some developers are trying to entice buyers by offering up to 95% of home loans through wholly-owned financial instititions. Younger demographics, first-time buyers and the financially vonerable are likley to be the ones agreeing to these loans, meaning they will fall into negative equity if prices decline 5 to 10%. This is of great concern considering that some investment banks have forecasted a 10-30% fall in house prices the past two months.