Hong Kong's gov't to stabilize property market if necessary

“The government noted that the relatively small number of residential flats completed and the record prices attained in certain transactions this year have caused concern about the supply of flats, difficulty in purchasing a home, and the possibility of a property bubble,” according to a statement on the government's Web site today.

Sales of homes in Hong Kong valued at more than HK$10 million (US$1.3 million) almost tripled in September, according to the Land Registry. The property market has been boosted by an influx of money from China, where a US$585 billion stimulus package has driven an economic rebound.

“The government will closely monitor market changes in the coming months and where necessary, fine-tune the land supply arrangements,” the statement said.

The Hong Kong Monetary Authority tightened down-payment requirements for luxury homes on Oct. 23 for the first time since 1991 to curtail property speculation after record-low interest rates fueled a surge in prices this year.

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