Hong Kong landlords blame banks for shop slump as financing access shrinks
Property owners argue commercial mortgage withdrawals have exacerbated the decline in retail values, leaving buyers unable to secure loans despite falling prices.
Landlords and property experts in Hong Kong are accusing local banks of worsening the city's retail shop crisis by refusing commercial mortgages. This stance has prevented potential buyers from accessing financing even as property values dropped significantly over recent years. Shih Wing-ching, founder of Centaline Property, stated at a Monday press conference that lenders appear supportive early in the process but withdraw approval near the final stages. Raymond Ho, convenor of Momentum 107, noted that eroding capital from falling shop values has severely hampered investment and consumption. Banks are currently pressuring owners to repay existing loans while simultaneously denying new purchase mortgages. These conflicting actions discourage both consumers and investors from entering the market, resulting in fewer retail transactions.
