Lower HK borrowing rates to propel property prices

Business | 31 Oct 2019 5:54 pm

A low interest rate environment after banks cut borrowing rates will help trigger a rally in property market transactions and prices, said Ricacorp chief executive Willy Liu Wai-keung.

Cookie Wong Wing-yan, managing director of Ricacorp Mortgage Agency, estimates that there is still room for mortgage rates to rise, and lenders may reduce preferential terms, if the one-month Hong Kong Interbank Offered Rate, which is linked to the mortgage rate, rises to nearly 2 percent, or if the aggregate balance in the Hong Kong banking system drops.

She says The Hongkong and Shanghai Banking Corporation previously lifted the mortgage rate to pave the way for the prime lending rate cut, and most local lenders will lower the prime lending rate back to the level in September last year.

Liu expects property prices to rebound before the end of the year, rising by about 3 percent to 5 percent compared with the beginning of the year.

 

Search Archive

Advanced Search
December 2019
S M T W T F S

Today's Standard



Yearly Magazine

Yearly Magazine