According to media reports, Hong Kong’s property market is starting to moderate as a result of the government’s cooling measures.
However, Financial Secretary John Tsang Chun-wah said the government would not ease the market curbs just yet. This despite the fact most of the city’s revenue comes from the property sector.
“Before the supply-demand situation of the property market regains its balance, the government must continue with its demand-side management measures. These serve to forestall an increased risk of a property bubble that would hamper our macro-economic and financial stability,” said Tsang during his budget speech on Wednesday.
Housing prices in Hong Kong have surged by more than two-fold since 2008, worsening income gaps and driving business costs.
Meanwhile, the territory plans to sell 34 residential sites in 2014 and 2015 which will yield about 15,500 homes. It will also increase housing land supply to achieve its target of 470,000 new flats in the next 10 years.
Furthermore, about 71,000 private homes are expected to enter the market in the next three to four years.
By coincidence, rival Singapore will also continue with its cooling measures, as announced in its budget last week.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
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