Hong Kong Financial Secretary John Tsang said he’s ready to step in if there are signs of overheating in the property market and warned property buyers not to “blindly” follow the market.
“I remain highly concerned about the risk of a price bubble” as the low interest environment persists, Tsang said in a Chinese-language blog posting on a government website yesterday.
Hong Kong’s housing prices rose more than 70 percent between the start of 2009 and mid-2011 on record low mortgage rates and an influx of mainland Chinese buyers. Prices have risen almost 4 percent this year, after falling about 5 percent in the second half, according to an index compiled by Centaline Property Agency Ltd.
Buyers shouldn’t believe that property prices will only rise and never fall, Tsang said.
The government is “determined” to increase land supply and will continue with measures to maintain stable home prices, Tsang said in a Feb. 1 annual budget address.