Hong Kong landlords accuse banks of deepening shop slump with reluctance to lend

For the past few years, Hong Kong's property market has seen a decline in shop values, leading to a vicious cycle where banks are hesitant to provide commercial mortgages, discouraging further transactions. Shih Wing-ching, founder of Centaline Property, explained that banks may initially be receptive but financing becomes challenging at the approval stage, causing difficulties for many potential buyers.

Raymond Ho, convenor of Momentum 107, criticized banks for pressuring owners to repay loans while refusing new mortgages, further discouraging market entry. The situation has worsened as banks face growing pressure to address troubled commercial-property loans, exacerbating the downward spiral. Industry experts are urging banks to adopt higher loan-to-value ratios, speed up approvals, and conduct more objective valuations to alleviate the market downturn.