21/6/2017-14

Buy “by the father" Standard & Poor’s: Hong Kong unexploded pot

Although Hong Kong property prices continue to be high, but the rating agency Standard & Poor’s corporate rating department director Matthew Chow that as more than 60% of Hong Kong households have paid off mortgage loans, these parents have the ability to provide support for the next generation of home buyers Hong Kong property prices temporarily difficult to “boil".

More than 60% of households to pay off the proportion of mortgage loans

Matthew Chow said in a teleconference yesterday that the current property prices in Hong Kong are at a very high level and that the affordability of mortgage loans is low and low. However, Hong Kong’s household balance sheet has maintained a strong performance. More than 60% of households have paid off In the hands of mortgage loans, so these parents have the ability to support the next generation of home ownership, so that the proportion of loans to maintain a controlled level.

Although the S & P expect the Hong Kong property market will not be adjusted in the short term, but also remind investors to pay attention to China and the United States economic situation, because the two countries and the Hong Kong economy is closely related to the external economic events can impact on the property market in Hong Kong, The property market on the last decline, it is because the global financial crisis caused.

Matthew Chow also mentioned that the property market in China was subject to central restrictions and tightening of financing channels. It is expected that the property market will gradually slow down from the second half of this year to 2018; this year’s turnover is expected to fall by 5% to 10% , The first five months of this year, the mainland real estate turnover continued to rise, mainly driven by the three or four line city, the other hand, the first-tier cities were recorded decline, with three or four lines of urban economic growth slowed, coupled with population loss, will affect the local Market volume.

Three or four lines of urban economic growth slowdown in the room to pay material reduction

Standard & Poor’s also believes that investors should pay attention to other Asia-Pacific property market risk, while the property market risk ranking rose from No. 4 to No. 3, the risk level from the “neutral" raised to “increase"; S & P pointed out that although Asia-Pacific cities have launched a number of measures to try to cool the property market, but property prices continue to high, the family income has been unable to catch up with the increase in household debt, that the property market risk rising trend.