Hong Kong’s chief financial officer on Thursday said he does not see a major risk to the city’s property market nor does it need to adjust asset controls, as the financial center prepares to more interest rates.
Finance Minister Paul Chan was speaking after the Hong Kong Monetary Authority raised the prime rate on the overnight discount period by 75 basis points to 3.5%, the highest level since October 2008. , after a similar move by the US Federal Reserve.
Chan said that while house prices in Hong Kong fell by more than 6 per cent in the first eight months of the year as the rising exchange rate took a toll on sentiment, the property market depends on many factors including employment and availability. homeowner’s ability to repay.
“I don’t think there is any danger of a major correction,” he said. “Trading in the market is at a low level, but there is no need to adjust the controls.”
Current measures include stamp duty on non-Hong Kong citizens and second home buyers.
Hong Kong banks, which have lagged behind their US counterparts in raising interest rates in recent months, are expected to raise their lending rates at their best on Thursday, the first. since 2018.
Official data showed that private home prices in Hong Kong in July fell to their lowest level since February 2020, as homebuyers became more bearish on rising interest rates and an uncertain outlook.