Mainland property developers face a challenging loan market in Hong Kong next year as a reluctance among banks to lend keeps borrowing costs at a record high, according to Shui On Land Ltd.

The so-called all-in rate for three-year loans will hold at about 500 basis points for mainland real estate companies next year, according to Chief Financial Officer Daniel Wan at the Shanghai-based builder, which has borrowed in Hong Kong's syndicated loan market twice a year since 2010. That's about twice what Hong Kong-based developers pay, with all-in rates ranging from 175 basis points to 265 basis points this year, data compiled by Bloomberg show.

Bloomberg - Reuters