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Hong Kong's financial secretary says there is no major risk to property prices

HONG KONG (Reuters) – Hong Kong’s financial secretary said on Thursday he did not see huge risks to the city’s property market and no need to adjust property controls as the financial center braces for more interest rate hikes.

Financial Secretary Paul Chan speaks after the Hong Kong Monetary Authority raised the benchmark interest rate charged through the overnight discount window by 75 basis points to 3.5%. The highest since October last year 2008, the Fed did the same.

Chen said that while Hong Kong’s house prices were in the first eight months, as rising interest rates hurt sentiment, the property market depends on many factors, including employment and the repayment ability of homeowners.

“I don’t see the risk of a sharp correction,” he said. “The market volume is not large, but the control measures do not need to be adjusted.”

Existing measures include the imposition of stamp duty on non-Hong Kong citizens and second-home buyers.

Hong Kong banks, which have lagged their U.S. peers in rate hikes in recent months, are expected to raise their prime lending rates as early as Thursday, a move since

, the first rate hike*).

Hong Kong’s July private home prices fell to their lowest point since February 2020 Official data show , as homebuyers have become more pessimistic due to rising interest rates and uncertainty. appearance.

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