HK builders Wheelock, Sun Hung Kai may cut loan costs

Hong Kong

THE latest round of financing being raised by Hong Kong real-estate developers Wheelock & Co Ltd and Sun Hung Kai Properties Ltd is likely to drive down loan pricing further as banks compete to lend to corporates by lowering interest rates and fees.

Despite the recent imposition of a new stamp duty, and expectations that rate hikes will curb homebuyer demand, developers are asking for 20 per cent to 40 per cent discounts on loan pricing compared to what they paid for similar financing in the first half of the year, knowing that banks are flooded with liquidity and craving quality assets.