The HKMA frequently moves ahead to guard against the property market bubble
The HKMA has cracked down on the property market for two consecutive weeks, but the three major measures have been tightened for the property market. However, the basic factors that have caused the high property market in Hong Kong have not changed. The market is of the view that the new market is not hot and believes that there is little impact on the property market. Property bubble effect.
Investors overseas investors fearless spicy
The new hot strokes, the number of non-first investors to the mortgage into the upper limit of 10% reduction in the contribution rate of overseas buyers income ratio down 10%. But the two groups of people are well-capitalized persons, the former and the latter to the bank loans, respectively, only 20% of the proportion of new mortgage and 2%, so hot little impact on them.
Another measure is for banks to compete for mortgage business, continue to reduce interest rates, requiring banks to new mortgage loans to reduce the risk of the lower limit to 25%, so that banks can do the mortgage business to reduce the cooling of the property market. This is also limited to the effectiveness of the letter, the local bank capital adequacy ratio is high, and secondly because of the amount of US dollars and Chung Hong Kong’s 130 billion US dollars is still in Hong Kong, flooding the same situation, the cost of capital up opportunities.
The HKMA last week asked banks to tighten their construction loans to property developers and try to tighten their borrowers’ ditches so that they could not provide high-yield mortgages to new buyers. The HKMA frequently moves, nothing more than to remind the banks not to borrow too much, has become pushing up the price of combustion.
In fact, the new hot strokes to curb the effect of property is not big, because the property market supply and demand imbalance is not changed. Property prices continue to record high, the problem is simply missing, the former government to stop building HOS flats, private housing supply can not meet the needs of the public home, coupled with the global low interest rates environment, the funds need to find a way, investment property has become the Fuji selected. China to diversify the risk of high prices to grab land to grab land, and further push up property prices, so that second floor rose 15 weeks, the cumulative rose 7.2%.
These factors are superimposed so that the public will have the illusion of buying more and more expensive, and at the expense of the market, there will be a strange phenomenon of selling $ 10 million in a house in Tsuen Wan. In the property market extreme excitement, when everyone on the high price of buildings that often, began to accept the first hand price of 6 million yuan to sell the price is cheap. Parents see their children unable to buy a house, at the expense of their own savings for their children on the car.
Did not experience 97 floor disaster do not understand lethality
Buy a house is a lifetime thing, now parents burn the remaining purchasing power, to help their children on the train, is very unhealthy. Earlier, there were banks who were fighting for their fathers for their children, offering ultra-senior mortgages and making the borrowers pay 85 years old. Once the property market bubble burst, the consequences are unpredictable, especially many young people have not experienced 97 years of property prices after the storm, when the property market blasting, destroy a lot of owners 20 years of youth.
Hong Kong property prices have been expensive for seven consecutive years and the public housing burden ratio has increased to 66%. The HKMA is concerned about the property market bubble and warned banks to be careful to prepare for earthquake risk.