Hong Kong property market at risk, finance chief warns

(Sept 12): Hong Kong’s Financial Secretary Paul Chan warned potential buyers to be careful buying property in the world’s most expensive housing market, as moves by the Federal Reserve to unwind its balance sheet may shrink money supply.

Chan warned in June that Hong Kong’s property market is in a “dangerous situation” and vulnerable to a correction. Hong Kong Chief Executive Carrie Lam describes housing as citizens’ No. 1 concern and recently set up a task force on increasing land supply as she tries to rein in ever-escalating prices.

“One has to be very careful if one really wants to buy a property in Hong Kong,” Chan said in an interview on the sidelines of a Belt & Road Forum in Hong Kong on Monday. Buyers need to assess their ability to service mortgages as interest rates normalize, he said.

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