Barely a week after a developer in Hong Kong set the world price record for the sale of an apartment, the authorities have introduced new legislation to dampen demand at the top end of the market.
The Hong Kong Monetary Authority, the city's de facto central bank, has increased the downpayment required to purchase property worth $HK20 million ($2.8 million U.S.) or more from 30 percent to 40 percent of the purchase price.
While property prices in much of the world continue to fall, prices in Hong Kong have rocketed this year due in part to low interest rates and a wave of liquidity from mainland China, where Beijing last year unleashed a four trillion yuan ($636 billion U.S.) stimulus. Developers on the island say that mainland Chinese customers now account for as much as 40 percent of new-home sales. more...
