Axe all Hong Kong’s property cooling measures to boost sluggish market, political heavyweights and economists tell authorities ahead of budget
- Four of city’s top political parties call on finance chief Paul Chan to roll back property curbs, arguing partial easing last October didn’t trigger feared soaring housing prices
- ‘Scrapping all the extra stamp duties can add energy to the real estate market and release the purchasing power of residents,’ DAB’s Holden Chow says
Hong Kong authorities are under growing pressure ahead of the annual budget address to scrap all property cooling measures, with political heavyweights and economists saying the move will boost the sluggish market without causing home prices to soar.
Four of the city’s major political parties are among those urging Financial Secretary Paul Chan Mo-po to consider the shake-up, just two weeks before he announces the new budget on February 28.
The quartet included the Democratic Alliance for the Betterment and Progress of Hong Kong, the city’s largest party, which accounts for 19 out of the 90 seats on the Legislative Council.
Party vice-chairman Holden Chow Ho-ding called on the government to do more to boost the low volume of home transactions, pointing to how the easing of some property curbs last October had not triggered soaring flat prices.
“After the relaxation, there is no sign that it has affected Hongkongers’ [affordability] of properties,” he said. “Scrapping all the extra stamp duties can add energy to the real estate market and release the purchasing power of residents.”
In his annual policy address last October, Chief Executive John Lee Ka-chiu announced the rollback of some property cooling measures in a bid to “alleviate the financial burden” on residents.
Changes included ensuring buyers only needed to pay stamp duty if they sold their residential property within 24 months, instead of the previous threshold of 36 months.
