Hong Kong's property prices continue to decline, and the Central Plains City Leading Index (CCL) has fallen to its lowest level since February 2018. The HKMA issued guidelines to banks on Friday (23rd) to stress test requirements for property mortgage loan interest rates. From the current 3% to 2%, and for the first time since the introduction of the mechanism in 2010, the rate of interest rate adjustment has been reduced for the first time.
The new arrangement reduces the minimum monthly income requirement of prospective owners by nearly 10%, and adjusts the entry threshold for buyers in disguise.
Wang Dunjing, founder and president of Xiangyi Properties, believes that the new arrangement of the HKMA and the government's announcement on the same day that the entry quarantine arrangement will be adjusted to "0+3" are two moves in a row in one day, and they have given two boosters to the property market, which I believe will be helpful. Property prices stayed at the bottom or rebounded slightly.
Negative factors are still urging citizens to deal with risks
However, Wang Dunjing also reminded that there are still negative external factors at the moment, and everyone should prepare for risk response to seize opportunities.
Whether or not you buy a property right now, there are risks.
Wang Dunjing pointed out that it is necessary for the government to stabilize property prices, and he does not want to easily touch the "hot tricks" of the current property market.
However, if the two measures introduced on Friday are still unable to stabilize the property price, the government may make another move, but he stressed that the government wants to stabilize the property price, and the public should not evaluate it with a speculative attitude.
Regarding the above statement, he further explained that the reason for the government to stabilize property prices is because the overall economy and even the income of the entire property market are the pillars, so there must be stability.
But stressed that the government is not serving speculators.
In fact, from the point of view of the general public, property prices should not drop too much, or fall "incontinently".
However, in recent days, there have been involuntary price cuts in individual sectors.
Don't "alarm" hot tricks to avoid affecting financial stability
As for why the government does not want to "alarm" the current "spicy" measures.
He pointed out that "hot tricks" actually have the effect of stabilizing finance.
At present, the loan-to-deposit ratio in Hong Kong is at a low level, which reduces the number of "turns" of funds in Hong Kong, which has resulted in no overheating even though there is a large amount of funds in Hong Kong. Therefore, "hot tricks" have a considerable impact on financial policy.
The government does not want to influence financial policies and even affect the stability of Hong Kong as an international financial center. Therefore, the government tries not to be disturbed by "spicy tricks" such as "spicy taxation".
However, he believes that there is room for fine-tuning of the existing measures.
Since foreign and mainland professionals come to work in Hong Kong and will live there for several years, they ask why they are not allowed to buy properties in Hong Kong.
Since Hong Kong is "competing for talent", it is believed that there are opportunities for fine-tuning in this regard.
When talking about Financial Secretary Chen Maobo's statement on Thursday that Hong Kong's property prices will not fall off a cliff, Wang Dunjing clearly disagreed.
He pointed out that whenever a senior official makes a certain statement, he will introduce a very shrewd policy in the future.
Overall, the policies introduced on Friday were good.
Stress Test | HKMA: It has nothing to do with counter-cyclical measures, failed to confirm that the property market has entered a downward cycle Potential Investors: Avoid the CALL LOAN Stress Test | The Land Construction Association Liang Zhijian pointed out that the "government has been watching the property market" stress test | The HKMA lowered the property mortgage loan interest rate stress test from the current 3% to 2%