Property bubble

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


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%).

© ChinTell Ltd. All rights reserved.

Sponsored by HSBC.

The Week in China website and the weekly magazine publications are owned and maintained by ChinTell Limited, Hong Kong. Neither HSBC nor any member of the HSBC group of companies ("HSBC") endorses the contents and/or is involved in selecting, creating or editing the contents of the Week in China website or the Week in China magazine. The views expressed in these publications are solely the views of ChinTell Limited and do not necessarily reflect the views or investment ideas of HSBC. No responsibility will therefore be assumed by HSBC for the contents of these publications or for the errors or omissions therein.