Property buyers urged to be cautious in ability to repay loans

As US interest rate hikes will keep going into 2019.

Financial Secretary Paul Chan reminded potential property buyers to be cautious in assessing their ability to repay mortgage loans in light of the US interest rate rise. He noted that US interest rate hikes will continue into 2019.

He said under the peg system, Hong Kong interest rates will need to follow US rate rises, though the timing may not be the same.

He also noted the projected private flat supply for the coming three to four years is 96,000 - 50% higher than five years ago before the current-term administration took office.

Chan added potential homebuyers should keep in mind that the interest rate hike cycle will have a negative impact on property prices.