Hong Kong Financial Secretary John Tsang said Friday the city's de facto central bank is studying ways to further tighten mortgage lending, as part of the government's efforts to stabilize prices in the city's booming property market which have soared since 2009 to record levels.
Tsang said the Hong Kong Monetary Authority will unveil new measures shortly, and that the government will announce its land-sale plan for the July-September period later Friday.
He added the number of land sales will be "far more" than the nine residential sites slated for sale in the April-June period, via both tenders and auctions.
Tsang said the property market is "abnormal" now, and he sees increasing risks amid the rising prices.
Hong Kong's average home prices rose around 24% in 2010, following a 30% jump in 2009, as abundant liquidity and record-low interest rates helped boost demand. A flood of mainland Chinese buyers has also fueled the market boom, prompting some local residents to demand official intervention to rein in prices.
Following Tsang's comments, the Hang Seng Property sub-index was down 0.9% at 27,736.53 at 03:38 GMT
Hong Kong's government fetched a lower-than-expected HK$11.65 billion (US$1.50 billion) for a luxury residential site in the Mid-Levels district at an auction Thursday, though the price was still second highest ever paid at a land auction in the city as demand for prime real estate in the remains buoyant due to limited supply.
Tsang said Friday the result is a reflection of the current sentiment in the property market, and the government is highly concerned about an asset bubble. He warned earlier property buyers should be careful as prices have surpassed the peak hit in the last asset bubble in 1997.
In November, the government imposed taxes to discourage property speculation, and pledged to increase land supply in the current fiscal year by selling dozens of residential sites.
Results have so far been mixed, as property transaction figures have remained relatively robust in recent months, though analysts said higher mortgage rates could trigger a correction in the market.
Tsang said the Hong Kong Monetary Authority will unveil new measures shortly, and that the government will announce its land-sale plan for the July-September period later Friday.
He added the number of land sales will be "far more" than the nine residential sites slated for sale in the April-June period, via both tenders and auctions.
Tsang said the property market is "abnormal" now, and he sees increasing risks amid the rising prices.
Hong Kong's average home prices rose around 24% in 2010, following a 30% jump in 2009, as abundant liquidity and record-low interest rates helped boost demand. A flood of mainland Chinese buyers has also fueled the market boom, prompting some local residents to demand official intervention to rein in prices.
Following Tsang's comments, the Hang Seng Property sub-index was down 0.9% at 27,736.53 at 03:38 GMT
Tsang said Friday the result is a reflection of the current sentiment in the property market, and the government is highly concerned about an asset bubble. He warned earlier property buyers should be careful as prices have surpassed the peak hit in the last asset bubble in 1997.
In November, the government imposed taxes to discourage property speculation, and pledged to increase land supply in the current fiscal year by selling dozens of residential sites.
Results have so far been mixed, as property transaction figures have remained relatively robust in recent months, though analysts said higher mortgage rates could trigger a correction in the market.
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