8/2/2018-6

The property market still overheated risk Chen Delin: can be a high mortgage price ceiling without conditions “spicy” still have to examine the impact

The HKMA has launched a total of eight counter-cyclical measures against the property market so as to tighten the public housing threshold. As to whether it will consider relaxing the counter-cyclical measures to help members of the public get on the vehicle, the Chief Executive of the HKMA, Mr Edward Chan, continued to reiterate that there is still an overheated situation in the property market in Hong Kong with no conditions for “reducing spicyness.” However, he pointed out that the HKMC could explore how to raise the ceiling on property prices that would allow for a 90% mortgage ceiling. However, the impact of the impulse on the property market is still under review and there is no conclusion yet.

According to the policy of the insurer of the card company, the current requirement is that only 400 million or less of the properties can afford 90% mortgage. As for the opinions raised by the public about asking for higher property prices to help members of the public purchase property, Mr Chan said after taking a briefing on the Panel on Financial Affairs of the Legislative Council yesterday that he took note of the opinion that the licensed companies could make adjustments on the basis of a market mechanism and a risk- However, to weigh the market reaction, including whether it can increase the liquidity in the secondary market or whether it will make the owners’ prices more aggressive, needs careful consideration and emphasizes that there is no conclusive conclusion yet.

Counter-cyclical measures still need to be tightened

Mr Chan at the briefing mentioned that since August and September last year, there has been a rise in the price of property in Hong Kong, where small and medium-sized flats may be in a hurry because of rising demand. They think that there is still overheating in Hong Kong’s property market. If the property market upswing continues, counter-cyclical measures will continue to be tightened. Market developments will be closely monitored and appropriate measures will be taken if necessary.

Some Members questioned that the “spicy move” failed to suppress the upward trend of property prices. Mr Chan replied that tightening mortgage rates is not the only factor affecting property prices. It refers to the rather complex property market. In order to maintain the stability and resilience of the banking system, it is necessary to introduce counter-cyclical measures. He added that demand for housing in Hong Kong is high. Coupled with the shortage of land supply, the market continues to be optimistic about the upward trend in property prices. They think that even if the supply of land and housing increases in future, the optimism of the property market may not change in the short term.

Do not ignore dangerous bull in the bull market

Mr Chan reminded the property market is cyclical. When the property market is in a bullish uprising cycle, it is easy for the market to ignore a lot of dangerous signals. Taking 1997 as an example, he pointed out that many people were entering the market at that time and all believed that there was no decline in property prices. As a result, the property market has entered a long downward cycle. In addition, when the interest rate in the United States is normalized, Mr Chan said the interest rate will rise. He thinks the market is overly optimistic about the long-term low interest rate. He urged people who borrowed and leveraged themselves to manage their risks carefully. He said: “If interest An increase of 2% or 3%. The public’s burden on the mortgage supply will be very different. “