Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

Hong Kong Luxury Property Prices Choked By Tightening

Recommended Posts

http://www.bloomberg.com/news/2013-11-10/hong-kong-luxury-property-prices-choked-by-tightening.html

Hong Kong businessman Raymond Chiu says he has perfect credit and is prepared to spend about HK$16 million ($2 million) on a 1,000-square-foot apartment in the city’s Mid-Levels residential area. There’s just one catch. The government requires a 50 percent down payment.

That’s “really putting us off,” said Chiu, 45, who owns an information technology consulting company. “I run a business so cash flow is important. It’s frustrating because this is non-negotiable, though I have perfect credit history.”

A businessman seeking to overpay the irony on him appears lost. It's property gov, you know the type that only goes up in value.

Edited by interestrateripoff

Share this post


Link to post
Share on other sites

http://www.bloomberg.com/news/2013-11-15/hong-kong-property-still-in-danger-of-overheating-hkma-says.html

Hong Kong’s property market is still in danger of overheating and a rise in interest rates would “indisputably” affect the city, Norman Chan, chief executive of the Hong Kong Monetary Authority said today.

The outlook for Hong Kong’s property market was uncertain and it wasn’t clear whether it had entered a downward cycle, Chan said at a legislative briefing. Emerging markets would face the risk of capital outflow, currency depreciation and a decline of asset prices once the U.S. Federal Reserve starts tapering stimulus, he said.

“If interest rates rise because of the exit of the U.S. Fed, Hong Kong will indisputably be impacted, particularly because the Hong Kong property market still shows sign of overheating,” Chan said. “I’ve mentioned that household debt is still at a high level, accounting for about 61 percent of GDP.”

Property is driving the entire global economy and it appears now the the Fed either destroys the global economy via printing or by increasing interest rates.

Share this post


Link to post
Share on other sites

Property is driving the entire global economy and it appears now the the Fed either destroys the global economy via printing or by increasing interest rates.

I think the FED may have hoped it would destroy other economies in the same way as it destroyed the US one - 60,000 manufacturing plants gone in the last decade or so, fermenting bubbles and misallocation of capital across the globe to match its own.

Some countries obviously have other ideas though, realising where real wealth is produced - and it is not via a printing press.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   203 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.