Sino-File

Property bubble

“The risk in the property market is very high; sentiment in the property market is very exuberant”

Paul-Chan-Mo-Po-w

Hong Kong’s Financial Secretary Paul Chan warns that the city’s property market remains highly vulnerable to US interest rate rises. The principal government economist Helen Chan also told the Legislative Council this week that if current low rates rose “to a normal level” – i.e. a 3 percentage point rise – home

owners would have to set aside 86% of their monthly income for mortgage payments (currently it is 66%).


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