China Vanke has sold nearly three quarters of the more than 200 units on offer at its Le Mont project on the first day of sales, despite earlier reports indicating that some Hong Kong banks were refusing to extend mortgages to prospective buyers.

By 5pm on Saturday, 162 of the 228 available flats at the new Tai Po residential project developed by Vanke Hong Kong, wholly owned by China Vanke, had been sold, said Sammy Po Siu-ming, CEO of Midland Realty's residential division.

The flats - ranging from 214 sq ft to 873 sq ft - include 28 studios, 67 one-bedroom units, 93 two-bedroom units, 24 three-bedroom units, nine four-bedroom units and seven special units. They are part of a six-tower residential complex, projected to be completed by July 2026.

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Prices for the units range from HK$2.38 million to HK$11.41 million (US$306,000 to US$1.47 million), while the price per square foot is between HK$9,185 and HK$14,392. That is over 30 per cent lower than prices of comparable properties in the neighbourhood two years ago, according to property agents.

The Le Mont project is located in Tai Po. Photo: Handout alt=The Le Mont project is located in Tai Po. Photo: Handout>

Le Mont closed its ballot registration at 8pm on Thursday, attracting a total of 7,418 applications - an oversubscription of more than 31 times.

China Vanke, once the largest real estate developer on the mainland but now battling a liquidity crisis, faced renewed challenges after several banks in Hong Kong rejected mortgage applications from potential buyers of the project.

Standard Chartered and Chong Hing Bank were not accepting applications for the project, agents said earlier this week. The banks were assessing the risk of a Vanke default and its capacity to complete the project, according to a lawyer.

As of Friday, Hang Seng Bank, HSBC and Bank of East Asia confirmed they would provide mortgage financing for buyers, joining OCBC Hong Kong and Bank of Communications, according to a Vanke spokesman.

Bank of China (Hong Kong) and ICBC (Asia) also indicated they would extend mortgages for the project.

Some banks in Hong Kong have rejected mortgage applications for the Le Mont project. Photo: Nora Tam alt=Some banks in Hong Kong have rejected mortgage applications for the Le Mont project. Photo: Nora Tam>

China Vanke is grappling with nearly US$5 billion in debt maturities this year and is expected to report a record net loss of 45 billion yuan (US$6.2 billion) for 2024. Once regarded as a financially stable developer with state backing, Vanke's struggles underscore the ongoing impact of China's prolonged property downturn.

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Fitch Ratings in January downgraded China Vanke's long-term foreign and local-currency issuer default ratings from B+ to B-, citing the developer's deteriorating cash flow and sales outlook. It also downgraded the long-term issuer default rating for Vanke Hong Kong from B to CCC+.

While Hong Kong's property market is enduring a third year of downturn, interest has been recovering in recent weeks following the Hong Kong government's reduction of stamp duty on small flats and a recent stock rally that has boosted potential buyers' confidence.

Around 1,330 new home sales have been recorded so far this month, compared to 758 in January and 901 in February. The number of transactions is expected to exceed 3,000 by the end of the month, according to Louis Chan Wing-kit, CEO of Centaline Property Agency.

Chan noted that the market was rebounding, helped by the competitive pricing of newly launched projects.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2025 South China Morning Post Publishers Ltd. All rights reserved.

Copyright (c) 2025. South China Morning Post Publishers Ltd. All rights reserved.

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