ong Kong is facing a bubble and the government is ready to introduce drastic measures if necessary, Financial Secretary John Tsang said yesterday, as residential prices in the Chinese territory have surged to record highs.
“Hong Kong’s housing sector is unusually strong because of loose monetary policy in advanced markets such as Europe and the United States, ample liquidity, super-low interest rates and strong economic growth,” Mr Tsang said. “The risk of a bubble is increasing by the day.”
Hong Kong, home to the world’s most expensive residential and office properties, has seen housing prices rise 12.5 per cent this year, surpassing 1997 peaks amid low interest rates, buying by mainland Chinese investors and strong economic growth.
The Chinese territory, known for its towering residential buildings and high-end apartments perched on its hilly terrain, has seen housing prices climb 72 per cent since the start of 2009, after the global financial crisis.
Source : Today – 21 Jun 2011