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Gov’t eases mortgage measures to boost property market

The maximum loan-to-value ratio for all properties has been adjusted to 70%.

The government has eased mortgage loan measures, adjusting the maximum loan-to-value ratio for all properties to 70% to stabilise the Hong Kong property market.

“About the removal of all the macro-prudential measures, namely the loan-to-value (ratio) ceiling for bank loans, the property market, in terms of pricing, has come down quite a bit since September 2021. The market started to stabilise,” Paul Chan, Financial Secretary said.

In removing these measures the government took into consideration the banking sector which is currently well capitalised. 

Chan said there will be enough residential supply in the next three to four years, with around 108,000 first-hand units available.“So given those circumstances, we should not unduly impose measures to suppress the demand or try to prioritise the different demands,” he added.

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