Measures on HK commercial properties if necessary

HKMA Chief Executive Norman Chan on Monday warns of restrictive measures to rein in speculation of commercial properties, should the need arise.

Although Hong Kong banks are more cautious in lending money for trading of commercial properties, however, if transactions become so hot so as to bring about risks to the city's banking system, HKMA will require the banks to tighten up lending for such investments, according to Chan.

Commercial properties in Hong Kong have seen a surge of speculative activities after the government further increased transaction costs on short-term home resales and non-local buyers.

However, in a major twist to the current property market, several major property developers in the city, including Sun Hung Kai Properties, New World Development and Sino Land, have all started selling parking spaces instead of residential homes, as these sales are not curbed by government measures.

Last week, Sun Hung Kai released for sale 665 vacant parking spaces from 10 housing real estates, which were priced from HK$200,000 ($25,800) to HK$470,000.

Reports indicated that a local investor bought 50 parking spaces in Woodland Crest - a Sun Hung Kai's real estate in Sheung Shui, with a total transaction value exceeding HK$12 million.