Business
Hong Kong Mortgage Adjustment Boosts Property Market Optimism: A Potential Surge in Home Buying Tempered by Inventory Glut
Paul Chan suggests that an adjustment in the Hong Kong mortgage policies brings about an optimistic outlook in the real estate market. Experts concur that this modification will encourage purchases, but they also warn that it might take several years for a complete rebound due to an oversupply of new dwellings.
With the updated regulations, purchasers of homes can now secure funding for up to 70% of the buying price of a house, effective immediately, irrespective of the property's worth or planned purpose. Moreover, the debt repayment proportion has increased to 50% from the previous 40%, unifying the rate for both residential and non-residential properties, as stated.
The HKMA stated that properties worth over HK$30 million will now be eligible for 70% financing, a rise from the former 50% to 60% financing.
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