Hong Kong property prices expected to stay high
31 March 2015 - 3:05AM
Property
Hong Kong property prices are expected to stay
high, despite a new wave of market cooling measures.Hong Kong
property prices are expected to stay high, despite a new wave of
cooling measures introduced by the goverment.
Authorities announced last month that the 2015 Land
Sale Programme would include 29 residential sites, mostly located
in the New Territories, wich will create approximately 16,000
flats. Knight Frank forecasts a new supply of approximately 19,000
units coming to the market in the next 12 months, which would meet
the government’s annual target.Property prices, though, continue to
climb, in spite of a wave of cooling measures since 2010. In
response, the government has announced that residential properties
worth HK$7 million or less will have their maximum LTV ratio
lowered to 60 per cent from the previous 70 per cent, while lending
for thosse borrowing for a second property has also been
capped.
"We believe these new measures will affect buying
sentiment in the sales market of small to medium-sized homes, in
the short-term," predicts Knight Frank, but with first-time buyers
still srong, the policies are expected to have only a "limited
impact" on values.
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