Hong Kong mortgage relief won't revive weak property market

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Hong Kong mortgage relief won't revive weak property market
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HONG KONG (BLOOMBERG) - The Hong Kong Monetary Authority's move to relax loan rules for the first time in more than a decade is unlikely to provide a significant boost for a commercial property market battered by the coronavirus pandemic and a deep recession.. Read more at straitstimes.com.

HONG KONG - The Hong Kong Monetary Authority's move to relax loan rules for the first time in more than a decade is unlikely to provide a significant boost for a commercial property market battered by the coronavirus pandemic and a deep recession.

"The measure won't turn the market around," though it will provide some support, Ms Wong said."Borrowers are still subject to restrictions like stress tests, and many investors are looking for recovery signs before they make purchases." The decision is aimed at relieving pressure for property owners who are struggling to repay mortgages as rental income declines, said Thomas Lam, an executive director at Knight Frank. The relaxation is unlikely to lead to an explosion of loans or a booming property market, Ms Wong said.

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