The Hong Kong government’s new rules for more liberal mortgage financing are expected to bring a positive change in the real estate market. Chief Executive John Lee Ka-chiu announced the changes in his policy address, allowing buyers to finance a greater amount of the purchase price for residential and non-residential properties.
Financial Secretary Paul Chan Mo-po expressed confidence in the new rules, projecting a more positive expectation for the market. The move aims to overcome the market’s inertia, which has seen declines in both residential and non-residential property prices.
Under the new rules, homebuyers can now finance up to 70% of a home’s purchase price, with the debt-servicing ratio raised to 50%. This change is expected to revitalize the market and support recovery.