Hong Kong’s latest relaxation on mortgage loans could hardly shore up demand amid interest rate hikes – Citigroup 

>>REAL-TIME UPDATES IN THE WIRE. CLICK HERE<<<

While the Hong Kong Monetary Authority last Friday relaxed the maximum loan-to-value ratio (LTV) on self-use residential properties, analysts believe that such move could hardly shore up demand in the housing market since buyers are deterred by rising mortgage rates, said Citigroup analysts.

Citigroup analysts said the policy easing would cast minimal impact on boosting confidence in Hong Kong’s property market, because self-use residential property transactions above HK$12 million accounted for only 12% of total transactions, whereas LTV ratios are already high for less expensive properties. 

The broker upheld the forecast that Hong Kong’s home prices in the second half of the year will drop 6%.