Property prices raise concerns in Hong Kong

A recent report that the world's most expensive flats are located in Hong Kong has sparked great concern.

Financial Secretary John Tsang met representatives of Real Estate Developers. He told them the Hong Kong SAR Government hopes for the stable development and self-regulation of the property market. He says the government will intervene in the case of unfair and unhealthy development.

The President of the Hong Kong Monetary Authority, Norman Chan, says the banks have been told to lower the upper limit of mortgage loans from 7 percent to 6 percent for properties valued at 20-million Hong Kong dollars or above. Chan cited the increased loan risks due to surging prices of luxury homes.

Insiders say those prices have gone sky high. Last month, a flat went for 439 million Hong Kong dollars, setting a world record.