Full Breakdown
Bank Lending Pullback Deepens Hong Kong Shop Property Slump
9/7/2026, 11:11:42 PM
Core Event
Hong Kong landlords and property-industry representatives say banks are worsening the city’s commercial-property downturn by retreating from shop-mortgage lending. They argue that prospective buyers are increasingly turned away at the financing stage, even as residential-mortgage demand has risen this year. The reduced availability of commercial loans, they claim, is limiting the pool of buyers and suppressing transaction volumes in the retail-property market.
Background: Declining Shop Values and Residential Market Strength
Over the past several years, shop prices in Hong Kong have fallen sharply, eroding owners’ equity and the capital available for new purchases. At the same time, the residential market has gained momentum, prompting banks to focus on home-mortgage borrowers. Industry observers note that banks are pressing shop-property owners to repay existing loans while simultaneously refusing new commercial mortgages, a combination that they say discourages both users and investors from entering the market.
Key Figures & Groups
- Shih Wing-ching – Founder of Centaline Property, who highlighted the length of the financing process and the loss of potential deals.
- Raymond Ho – Convenor of the advocacy group Momentum 107, who warned that the sharp decline in shop values has rapidly eroded available capital.
- Momentum 107 – A landlord-focused advocacy organization that organized a press conference to voice industry concerns.
Official Statements & Responses
Shih Wing-ching described banks as initially positive with prospective buyers but noted that financing often becomes difficult once deals reach the approval stage, leading to “a long time” before closure and many clients failing to secure funds.
Verbatim Quotes
- “A considerable number of clients end up unable to get financing at the last minute … If it weren’t for this, there would be many more shop transactions.” — Raymond Ho, convenor of Momentum 107
