Hon Kwok Land Investment expects its property contract sales to reach an 11-year high of more than one billion yuan (HK$1.13bn) this year despite credit controls on second-home purchases.

Undaunted by the policy, which requires a 40% down payment for second-home purchases, Hon Kwok will release 400 units for sale in the second phase of its Botanica residential development in Guangzhou in December.

'As the Guangzhou property market is dominated by end-users [generally first-time homebuyers], the mainland banking watchdog's re-enforcement of strict mortgage lending policies on second-home purchases has had a limited impact on the city,' said finance director Louis Pang Woon-chang.

South China Morning Post