Hong Kong’s surprise move to ease mortgage restrictions aims to restore “normality” in the sluggish property market and bolster investor confidence, the finance minister has said.
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Financial Secretary Paul Chan Mo-po also said on Friday that relaxing rules for a cash-for-residency scheme, which will now cover investments in luxury homes, would lure more applicants without upsetting the property market.
City leader John Lee Ka-chiu unveiled his latest policy address on Wednesday, announcing the changes to mortgage financing restrictions by increasing the loan-to-price ratio to 70 per cent for all properties.
Chan said the measure would allow residents to trade properties in “normal market circumstances”.
“We hope by restoring to a normal market, everyone will have a more positive forecast for the development of the property market,” he said.
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Acknowledging property prices had dropped by about 27 per cent from their highest point in 2021, Chan said the trend was an “orderly adjustment” that stabilised the market.