Speaking to the media in the run up to the 28th anniversary of the Hong Kong Special Administrative Region, Chan said ample capital inflows mean there’s plenty of liquidity in the local system, which is good news for property buyers.
“Although the extent and speed of interest rate cuts this year could be smaller and slower than originally expected, you can also see that a lot of capital has been flowing into Hong Kong during this period of time, which has resulted in abundant funds in the local banking system, and so the interest on mortgage payments has also been reduced accordingly,” Chan said.
“Our assessment is that the property market is generally stable at this stage, and interest rates will remain relatively low for a while,” he added.
The finance chief said while property prices have declined by 28 percent from its peak in September 2021 to April this year, there had been no panic-selling, and no systemic risk to the market.
Chan brushed off a recent increase in cancelled property transactions, saying he wouldn’t speculate on the circumstances for individual homebuyers.
He also said the government is committed to supplying enough land for residential use, noting that eight plots on offer in its land sale programme this year can yield about 4,500 new flats.
The FS also painted a rosy picture for the general economy, saying he expects GDP growth in the second quarter to be “pretty good.”
But in the face of geopolitical uncertainties, officials have no plans to upgrade the SAR’s overall economic forecast of between 2-3 percent growth for the year.
He said Hong Kong — which topped the globe in initial public offering fundraising in the first half of the year — will seize the opportunity to attract more overseas-listed mainland companies to come home, as firms face a more hostile environment in the United States.
Chan also acknowledged that some industries, such as the retail and catering sectors, have been struggling, saying they face a “tough transitional period.”
He said the government will continue to offer financial help to help businesses to develop e-commerce operations and improve services.
