Hong Kong Financial Secretary Paul Chan Announces Removal of Property Cooling Measures and Market Impact

Hong Kong’s Financial Secretary, Paul Chan Mo-po, announced the removal of some property cooling measures in response to the changing market dynamics. Chan stated that the current balance between supply and demand no longer required demand-side management measures, allowing the market to trade freely.

The relaxation of property restrictions was further supported by the Hong Kong Monetary Authority’s decision to ease mortgage lending requirements for homebuyers and properties for rent and offices. This move was expected to boost people’s confidence in the market and increase transaction volumes.

Despite the positive outlook, a government insider cautioned that it would be difficult to estimate the effect of the changes on property prices. The insider emphasized that various factors, including supply and demand, market confidence, and macroeconomic conditions, would influence property prices.

Furthermore, the insider highlighted that the chances of large-scale, short-term speculation were low following the relaxation of restrictions. Data showed a gradual increase in residential property transactions, with a notable decline in short-term resales and transactions by non-local individuals and companies.

While the removal of property curbs aimed to stimulate the economy, opinions varied among experts and industry insiders. Diamond Shea Hing-wan, chairman of the Hong Kong Owners Club, expressed hesitance in purchasing additional properties amid falling prices. On the other hand, Ho Lok-sang, a research professor, predicted a mild boost in the market, driven by increased demand and supply.

Overall, the property market in Hong Kong was expected to experience a shift with the removal of cooling measures, signaling a new phase of growth and opportunity for investors and homebuyers.