HK Home Prices More Than Double Those Of 1997

The Financial Secretary Paul Chan said on Monday that a rebound in Hong Kong's property market has sent prices soaring to a level that is 126 percent higher than the bubble of 1997.

Chan told a meeting of Legco's financial affairs panel that flat prices have risen for four consecutive months in the first four months of 2019, after a correction last year.

Another factor in this, Chan said, is that people do not expect any imminent increases in US interest rates.

He told lawmakers that prices have rebounded by nine percent since December, and are just one percent lower than the record high level in July last year.

Chan said the number of transactions has also significantly increased, to about 5,400 per month on average.

"The mortgage to income ratio stayed at 69 percent which means prices are excessively above the affordability of the public," he said.

The finance chief also warned of more economic uncertainty as the US-China trade war escalates.

He said Hong Kong stocks saw their largest drop last month since October, adding that economic growth in the first quarter slowed.

He said while it's difficult to predict how the trade war will play out, trade tensions are unlikely to be resolved in the near-term.