Norman Chan: "Cycle change needed to ease property curbs"

Posted: Jul 16 2014Last Updated: Jul 14 2017
Norman Chan14 July 2014 - The Hong Kong Monetary Authority has introduced six rounds of "countercyclical" supervisory measures for containing the supply of mortgage credit during the upward cycle experienced since 2009.
Local newspapers reported that Hong Kong Monetary Authority chief executive Norman Chan Tak-lam wrote on the HKMA website and concluded that the latest figures have shown the effectiveness of the six rounds of "countercyclical" supervisory measures, saying the average loan-to-value ratio of new residential mortgages has dropped by nine percentage points to about 55 percent in recent months compared with 64 percent in September 2009.
The debt servicing ratio also fell six percentage points to 35 percent from 41 percent in 2010. The annualized growth in outstanding residential mortgages by banks has dropped to 4.2 percent since the second quarter of 2013.
Chan also said that once the property market's downward cycle can be confirmed, the supervisory measures introduced earlier can be relaxed as appropriate. However he added since there is no way of foreseeing the start of the downward cycle, or its speed and magnitude, the de facto central bank will have to closely monitor market developments and deploy appropriate measures to adjust the supply of mortgage credit by banks.

You May Also Like

Despite the Current Coronavirus Crisis, Real Estate Experts Don’t Foresee Prices Fal

12 March 2020 - Amidst the black-swan emergence of the coronavirus, rather than simply state my own views about the potential impact on property prices, I want to also summarize what various real estate experts across different parts of the industry
By: Joshua Han Miller

7 Tips to Consider if You Plan to Sell Your Home in Hong Kong

5 October 2020 - Events over the past year or so have contributed to significant economic turmoil in Hong Kong and by extension seriously upset the once predictably expensive local home property market. As a result, increasing numbers of homeowners
More Insights

Tight on time? Let us do the searching for you!

OKAY.COM - iOS App StoreOKAY.COM - Android Play Store
Let's Connect
15/F, Wilson House, 19-27 Wyndham St., Central, Hong Kong
+852 2102 0888
Do you want to login
You already have an account with us? How about logging in?