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Hong Kong property analysts urge more cooling measures

Byron Perry Property Report
Hong Kong property analysts urge more cooling measures - Hong Kong - analysis - property market

Property analysts in Hong Kong have urged the government their to implement more property market cooling measures, according to the South China Morning Post.

Financial Secretary John Tsang Chun-wah’s budget has failed to address the problem of stratospheric prices, they said. Property prices have rebounded strongly, after a brief slowdown at the end of last year when the government introduced cooling measures including extra stamp duties and tighter mortgage terms.

Prices in the 86 major Hong Kong estates have grown 7.28 per cent this year already according to Centaline’s Centra-City Leading Mass property index, which monitors price trends in mass residential estates.

Most market watchers expected Tsang to reveal more cooling measures in his budget released February 23. The market slowed down around the release of the budget but then demand and prices shot upward again after no new measures were announced.

Centaline founder Shih Wing-ching said he suggested that the government resume construction of Home Ownership Scheme flats back in 2004 to avoid big price increases, but the advice had not been taken. Shih said that the extra stamp duties had only kept local investors away from the market and that none of the measures address the major supply and demand problem.


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