On October 16, 2024, the Hong Kong Monetary Authority (HKMA) issued guidelines to adjust countercyclical macroprudential measures for property mortgage loans, following improved market sentiment after the government removed demand-side management measures. Despite an initial rise in housing transactions, volumes fell back, and residential property prices dropped 6.2% in early 2024, marking a total decline of 26.6% since 2021. The new guidelines set a maximum loan-to-value (LTV) ratio of 70% for all properties and adjusted the debt servicing ratio (DSR) limits to 50% for both self-use and non-self-use properties. These changes aim to enhance risk management while minimizing public impact, with immediate effect for new transactions and mortgage applications. The HKMA emphasized the importance of careful financial assessment for prospective buyers and will continue monitoring the market.
Resources: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/10/20241016-4/
