HONG KONG (Reuters) -Hong Kong’s finance chief stated on Thursday he doesn’t see a pointy threat to the town’s actual property market nor a necessity to regulate property management measures, because the monetary hub braces for extra rate of interest hikes.
Finance Secretary Paul Chan was talking after the Hong Kong Financial Authority raised its base charge charged by way of the in a single day low cost window by 75 foundation factors to three.5%, its highest since October 2008, following the identical transfer by the U.S. Federal Reserve.
Chan stated that whereas house costs in Hong Kong have dropped near over 6% within the first eight months as rising charges damage sentiment, the property market will depend on many elements together with employment and the reimbursement functionality of house owners.
“I do not suppose there is a threat of a pointy adjustment,” he stated. “The market transactions are low, however there is no want to regulate management measures.”
Present measures embody stamp duties on non-Hong Kong residents and second homebuyers.
Hong Kong banks, which have lagged their U.S. equivalents in elevating charges in latest months, are anticipated to extend their greatest lending charge as quickly as Thursday, the primary improve since 2018.
Official information confirmed Hong Kong non-public house costs in July dropped to the bottom since February 2020, as homebuyers turned extra bearish as a consequence of rising rates of interest and an unsure outlook.