Hong Kong mulls more cooling measures
June 11, 2011 - Hong Kong
Hong Kong's booming property market sees the city's de facto central bank preparing plans to further tighten mortage lending in an attempt to stabilize prices that have soared since 2009 to record prices.
Financial secretary, John Tsang said Friday that the market was ‘abnormal' and the Hong Kong Monetary Authority will unveil measures shortly and the government would announce its land-sale plan for the July-September period later Friday, expecting numbers to be ‘far more' than the nine residential sites sold in the June-April period.
Abundant liquidity, record-low interest rates and an influx of mainland Chinese buyers have boosted home prices, which rose 24 per cent in 2010 following a 30 per cent increase in 2009. Local residents are increasingly calling on the government to rein in prices.
Following Mr. Tsang's comments, the Hang Seng Property sub-index was down 0.9 per cent at 27.73653 midmorning Friday in Hong Kong.
According to the Wall Street Journal, the government fetched a lower-than-expected HK$11.65 (US$1.5 billion) for a luxury residential site in the Mid-Levels district at an auction Thursday, although the price was still the second highest ever paid at a land auction in the city.
Mr. Tsang said the government is highly concerned about an asset bubble and warned that property buyers should be careful as prices have surpassed the peak hit in the last asset bubble in 1997.
Via Property Report
Trends, property prices, property market, real estate market, real estate bubble, property boom, home prices, real estate prices, China property boom