Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Hong Kong’s Tsang ‘Highly Concerned’ About Property Price Bubble

April 9 (Bloomberg) -- 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.

To contact the reporter on this story: Michelle Yun in Hong Kong at myun11@bloomberg.net

To contact the editor responsible for this story: Gregory Turk at gturk2@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.