HSBC raises Park Island valuations by 10%

I am not sure how exactly HSBC calculates what it will loan on a property, but I woudl think a big part of it is that they look at recent sales transactions and then set their values on what they will loan on a property from there.

It is commonly said that in a "rising market" you typically need to pay 10-15% above bank valuations to secure the purchase of a property.

I have been closely following HSBC valuations of apartments on Park Island using this link:

What I noticed in the past, by trackng bank valuations of a range of apartments on Park Island, is that HSBC will usually raise or lower prices by a percent or 2 each month, depending on whether prices are rising or falling. So, it came as a suprise to me that HSBC today raised Park Island valuations by almost exactly 10% for all the apartments I have been tracking.

Its obviously nice news for owners, but he concern for buyers is that owners who are selling might now increase their asking prices accordingly. If I was a buyer, I would be quickly taking advantage of the increased valuation by getting a loan (based on the new valuation) offered by HSBC, and then make an offer to an owner who hopefully is not yet aware of HSBC's valuation increases.

If anyone can provide insight on how HSBC calculates property values, and why for Park Island, prices seemingly jumped 10% overnight, please let me know (you can post a comment on my Park Island website blog.

If you are an owner, and you have been tracking HSBC valuations, take a look and see if I am right about every apartment pretty much having been given a 10% increase overnight.