Banks in Hong Kong may find it difficult to implement mainland China’s style of property measures, when in comes to home loans.
“No common mortgage database is shared by the banks yet,” said Stanley Wong Yuen-fai, Executive Director at ICBC (Asia). “Banks cannot get hold of details of mortgages, hence it is hard for them to determine whether mortgage applications are for a first or a second home.”
Mr. Wong noted that measures implemented by the Hong Kong Monetary Authority (HKMA) last year, including increasing down payments for luxury properties, were sufficient to stabilise the market and curb speculation.
“It will be reasonable for the HKMA to use further measures to tighten mortgages if property prices continue to climb,” said Mr. Wong.
He noted that ICBC (Asia) has no plan to exit the Hong Kong interbank offered rate-based mortgage business but stressed that the rates can be adjusted from the current HIBOR +0.7 percent rate to one percent.
Peter Wong Tung-shun, Asia-Pacific Chief Executive of HSBC, said that the city-state wanted to take measures used in mainland China as a reference in fighting an asset bubble.
China’s State Council implemented new cooling measures to cool its property market in 30 cities in January, including raising the minimum down payment to 60 percent for second-home purchases.