Homebuyer subsidy not feasible: Financial Secretary

If interest rates rise, lower property prices may only hurt mortgage payers.

It is not feasible to use government funds to grant as allowance to first-time homebuyers, said Financial Secretary Paul Chan in an online discussion following the 2018 budget address. 

The FS believed that a homebuyer subsidy such as paying a portion of down payments or raising the loan-to-price ratio of mortgage loans, is not feasible due to a possible interest rate hike that may negatively impact prospective homebuyers with a tight budget.

This comes as Hong Kong is bound to the same fate as the US moves to increase interest rates this year which might cause property prices to plummet and only hurt mortgage payers right in the gut.

He added that the government is rolling out alternative measures to help Hong Kongers enter the heated housing market including increasing land supply for housing developments.

A total of 97,000 new flats will be available on the market in the next three to four years.