HK homebuyers hit by tighter mortgages

[HONG KONG] Hong Kong businessman Raymond Chiu says that he has perfect credit and is prepared to spend about HK$16 million (S$2.6 million) on a 1,000-square-foot apartment in the city's Mid-Levels residential area. There's just one catch. The government requires a 50 per cent down payment.

That's "really putting us off", said Mr Chiu, 45, who owns an information technology consulting company. "I run a business so cash flow is important. It's frustrating because this is non-negotiable, though I have perfect credit history."

Prices of high-end apartments, defined as those larger than 1,000 square feet or costing at least HK$10 million, have gained less than the broader market since the second half of 2012 as buyers in Mr Chiu's price bracket have been hardest hit after the government raised minimum down payments six times over less than three years as part of curbs to make homes more affordable.