Wednesday, May 23, 2012

Hong Kong mulls new cooling measures

Should home prices in Hong Kong continue to surge after breaching the 1997 peak, the city’s de facto central bank may implement news measures to cool the property market.  

According to Norman Chan Tak-lam, Chief Executive of the Hong Kong Monetary Authority (HKMA), flat prices continued rising in February and March, following a period of consolidation brought on by the last round of anti-cyclical measures implemented in June 2011.

“The recent adjustments in (the residential sector) may be due to the adverse external environment. But if home prices continue to rise in the future, we will consider taking further anti-cyclical measures.”

Still, Chan cannot predict which way home prices will go.

His warning follows a media report which said that the government is planning new initiatives to cool the market, such as boosting land supply, transaction costs and down payment requirements. The report added that the European debt crisis is expected to be a major factor on whether to implement the cooling measures.

Meanwhile, Chan encouraged home buyers to ensure that they can afford to service their debt obligations once interest rates rise to more “normal” levels. Currently, global interest rates are hovering at very low levels.

View the original article here

Source From Property Guru

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