Prices have surged by 26 per cent this year, and by more in the luxury segment, where mainland Chinese are snapping up apartments.
 |
| SKY HIGH Property prices in Hong Kong have surged by 26 per cent this year, and by more in the luxury segment, where mainland Chinese are snapping up apartments |
HONG KONG’S central bank yesterday moved to slow a surge in luxury property prices driven by rich buyers from mainland China by limiting mortgages amid growing concern over a real estate bubble in the territory.
Last week, Hong Kong’s Chief Executive Donald Tsang warned of a potential property bubble – as one luxury flat in the city sold for a world record HK$71,280 (S$12,852) per square foot – and said that the government could release more land for sale.
The Hong Kong Monetary Authority (HKMA) yesterday said that it would cap the mortgage limit for luxury property at 60 per cent, down from 70 per cent, and limit mortgage loan values.
‘It is very difficult to detect if a bubble is there,’ Norman Chan, HKMA’s chief executive, told reporters. ‘But what we’re concerned about is, given the very sharp rise in prices in this top segment of the property market, the risk, or credit risk, to these mortgage loans to these properties has increased.’
The HKMA said that the 60 per cent mortgage cap would apply to property valued at HK$20 million or more. For properties below that, the 70 per cent ratio will remain but the maximum loan amount will be capped at HK$12 million.
‘We do not directly target price levels,’ Mr Chan said. Continue reading
Lush Dream Home 