Hong Kong’s government will closely watch and revise its land supply arrangements, if necessary, on rising concern over development of a property bubble in the economy, Chief Executive Donald Tsang said in his annual policy address on Wednesday.
Tsang told the Legislative Council, “The relatively small number of residential units completed and the record prices attained in certain transactions this year have caused concern about the supply of flats, difficulty in purchasing a home, and the possibility of a property bubble.” He noted that property prices returned to their mid-2008 levels, except for luxury flats.
For luxury flats, prices are still below their peak in 1997. At the same time, home purchasing power is greater than in 1997 and the number of negative equity cases remains very small. A steady property market can avoid property owners from being hit hard during an economic downturn.
According to Land Registry, the number of sale and purchase agreements for all building units received for registration in September jumped 95.9% annually to 14,437 units and sales of residential units surged 102.2%.
Hong Kong GDP rose 3.3% sequentially in the second quarter after falling 4.3% in the first three months of the year. That was the first increase following declines in four consecutive quarters. The strong stimulus measures adopted by the Mainland Authorities helped the Chinese economy regain growth momentum, thereby benefiting the Hong Kong economy.
Tsang told the Legislative Council, “The relatively small number of residential units completed and the record prices attained in certain transactions this year have caused concern about the supply of flats, difficulty in purchasing a home, and the possibility of a property bubble.” He noted that property prices returned to their mid-2008 levels, except for luxury flats.
For luxury flats, prices are still below their peak in 1997. At the same time, home purchasing power is greater than in 1997 and the number of negative equity cases remains very small. A steady property market can avoid property owners from being hit hard during an economic downturn.
According to Land Registry, the number of sale and purchase agreements for all building units received for registration in September jumped 95.9% annually to 14,437 units and sales of residential units surged 102.2%.
Hong Kong GDP rose 3.3% sequentially in the second quarter after falling 4.3% in the first three months of the year. That was the first increase following declines in four consecutive quarters. The strong stimulus measures adopted by the Mainland Authorities helped the Chinese economy regain growth momentum, thereby benefiting the Hong Kong economy.
No comments:
Post a Comment