The two percent mortgage rate increase expected in China this year will have minimal impact on Hong Kong’s property market, according to property advisers DTZ Debenham Tie Leung.
Alva To Yu-hung, Consulting and Research Director at DTZ, said such interest rates will remain affordable.
Mr. To predicts that overall property prices will increase 15 percent, while prices of luxury homes will climb between 15 and 20 percent this year.
DTZ said month-on-month price increases at mass residential projects averaged at 8 percent in February, compared to 6.3 percent for luxury homes.
Mr. To added that if the government implements restrictions on property prices instead of their size, it will violate the free market principle.
He suggests that the government relaunch the Home Ownership Scheme in order to help the lower income group acquire homes, adding that this will not lead to a drop in private property prices.
Mr. To expects 13,000 residential deals this month and 35,764 transactions in Q1, as many owners price their flats aggressively.