John Tsang: Ease of “tough measures” might reinvigorate market’s excitement

Posted: Jul 3 2014Last Updated: Aug 25 2016
Share:

30 June 2014 - The Financial Secretary of Hong Kong, John Tsang Chun-wah, recently stated in his blog that due to the ongoing low interest rate environment and tight supply for commercial and residential properties, property prices have soared irrationally and have been showing “bubble-like conditions” over the past few years. The market generally believes that property prices will "only go up and not fall”.  As a result, the HKMA has applied tightening rules for mortgage terms six times as well as government measures three times in recent years.

 

Mr. Tsang also stated that the non-residential property market has cooled down since the introduction of double stamp duty.  The pace of price growth for office buildings, industrial buildings, and retail properties have shown signs of slowing down, while the pace of rental price growth has been stabilizing. The “tough measures” are helping to cool down the property market and in the current market environment, an easing of “tough measures” might reinvigorate the property market. 

 

The sensitivity of property prices to government policy is high in Hong Kong according to Mr. Tsang. He hopes that legislators will accept the government's original DSD proposal in order to allow early implementation of measures to maintain a stable property market.

You May Also Like

Despite the Current Coronavirus Crisis, Real Estate Experts Don’t Foresee Prices Fal

12 March 2020 - Amidst the black-swan emergence of the coronavirus, rather than simply state my own views about the potential impact on property prices, I want to also summarize what various real estate experts across different parts of the industry
By: Joshua Han Miller

7 Tips to Consider if You Plan to Sell Your Home in Hong Kong

5 October 2020 - Events over the past year or so have contributed to significant economic turmoil in Hong Kong and by extension seriously upset the once predictably expensive local home property market. As a result, increasing numbers of homeowners
By: OKAY.com
More Insights

Want to find your ideal home in seconds? We are happy to help!

OKAY.COM - iOS App StoreOKAY.COM - Android Play Store
15/F, Wilson House, 19-27 Wyndham Street, Central, Hong Kong | T:+852 2102 0888
Do you want to login
You already have an account with us? How about logging in?