BOC receives over 600 MNN mortgage applications

The Bank of China has received over 600 mortgage applications for residential units in the Macau New Neighbourhood (MNN) in Hengqin.

Bank data has revealed most buyers are aged between 30 and 50 years old, and there are also local retirees.

Speaking to TDM, Bank of China Macau director and vice president Chan Weng Tat said that, so far, more than half the applications have been approved, with loans being for 90% of the property value.

Sales for the MNN began in November, attracting interest from individuals who did not own property.

Each apartment is priced between RMB2.41 million and RMB3.71 million, depending on its size and location.

More than 1000 residential units in the MNN have been reserved by prospective buyers so far, according to Chan.

The review and approval process for loan applications can take as little as five days as long as potential buyers have submitted all required documentation.

Late last year, the government proposed a universal reduction of the maximum loan to value ratio for mortgages for residential units, from 90% to 70%.

Currently, the maximum ratio depends on the property prices concerned.

However, the ratio for government subsidized housing – also known as Economic Housing – will remain at 90%.

Chan has forecast transactions for “high-priced flats” in the local property market would increase if interest rates were lower. Staff Reporter