THE Government's intervention in the home-loans market and banks' tight mortgage policies will fail to prevent prices rising in the long run, says Centaline Property Agency.
The property agent, in its latest quarterly report, criticised the Government, which has set a 70 per cent ceiling on mortgages offered by banks to home buyers, for its ''improper and impractical'' interference in the market.
It said buying homes was an effective way to hedge against high inflation, especially with interest rates low.
''But the Government and banks are apparently unhappy to see more Hong Kong people buying homes, and try to establish artificial obstacles by all means for home purchases,'' the agent said.
It said home prices had fallen by five to 10 per cent in the third quarter of the year, following new mortgage restrictions imposed by banks.
But the agent predicted that accumulated demand would eventually prompt home prices to rise - possibly before Chinese New Year.
Ronnie Chan Chi-chung, the chairman of property developer Hang Lung Development, also believes any price falls will only be temporary.
