Hong Kong’s move to tighten regulations on mortgage lending last month showed that the government wants to avoid a big property bubble, Hong Kong Chief Executive Donald Tsang said yesterday.
 |
| Mr Tsang: Said that the government had tools available to stabilise the market but did not give details |
‘We do not want to see a huge property bubble developing in Hong Kong,’ he said during a business lunch. He added that the government had tools available to stabilise the market but did not give details except to say that any action would be motivated by a need for stability, transparency and smooth market operations.
Prices of mass market residential property have surged more than 20 per cent this year, despite the economic downturn, while luxury property prices have soared more than 40 per cent, benefiting from excess liquidity globally and an influx of cash from newly rich mainland Chinese.
Mr Tsang, however, said that the current surge in prices exhibited far fewer signs of speculative behaviour than a previous property market bubble in 1997 which burst amid the Asian financial crisis.
Last month, Mr Tsang said that the government, which sells land by auction, could make more available for residential property development. Continue reading
Lush Dream Home 