Hong Kong Monetary Authority Cautions Property Buyers

Following the Federal Reserve's decision to pass over on a rate rise last week, the Chief Executive of the Hong Kong Monetary Authority Norman T.L. Chan issued a statement to the media to alert Hong Kong property owners and potential buyers that the HKMA still expects a rise in the US rates.

In his statement Mr Chan commented that, “while the FOMC decided not to raise the policy interest rate last night, it is worth noting that 13 out of 17 members of FOMC expected a lift-off within this year.  So it is important that we should not think that the ultra low interest rate environment will last indefinitely.

In terms of Hong Kong’s property market, the disconnect between the purchasing power of our citizens and the high valuation has become very serious for quite some time.  With the recent slowdown of the Mainland and Hong Kong economies, it is important that buyers of property take into full account of the fact that the ultra low mortgage interest rates will not last forever.

They should carefully assess their income levels and repayment ability when they take out mortgage loans, so as to avoid running into financial difficulties when interest rates normalise and the property cycle turns.”

WEB'S BEST

Top stories from across the globe

  • Asia Pacific's Top Six Credit Risks For 2017
  • The 5 Most Shocking News in 2016
  • Hazel Moore: Banks Are Completely Wasting Valuable Customer Data
  • Morgan Stanley CEO Makes First-Ever Stock Sales After Bank Rally
  • Former Goldman's Partner in Boutique Venture
  • Hong Kong and Singapore in Push for Fee Transparency
More

PHOTO GALLERIES

finews.asia Networking Event

finews.asia Networking Event

Show pictures

stars China Symposium 2016

stars China Symposium 2016

Show pictures

Compare my salary

Compare my salary

Feeling Underpaid? Benchmark your salary by job title, company and location. Find out where you stand in minutes.

compare my salary

Newsletter

Newsletter-SymbolFree Subscription

Subscribe to our free newsletter and receive daily email alerts from the finews editorial team with a list of the top featured articles.

Share with us

Do you have any market intelligence to share with finews.asia – email us on info@finews.asia – All communication is completely confidential and strictly anonymous.