Concrete Analysis | Policy support, Covid-19 vaccines create new opportunities in Hong Kong property market
- Removal of double stamp duty for commercial properties will bring investors back into the market
- Lantau can be part of housing solution, rival Island South as an alternative in terms of affordability
Chief Executive Carrie Lam Cheng Yuet-ngor’s fourth policy address was undoubtedly one of the most complicated of her tenure; has anything made governance, anywhere in the world, more difficult this year than Covid-19?
Given rising unemployment in sectors hit hard by the pandemic, it should come as no surprise that housing supply and property prices were high on her agenda. Housing, she said, is not only a matter of supply and demand, but also an issue of social justice and allocation of resources. F rom the point of view of governance, “unresolved housing problems may jeopardise the long-term prosperity and stability of … society”, Lam said.
Whether it’s policy that is working or virus-related dampening, or a combination of both, prices have risen just 0.4 per cent this year, according to the Rating and Valuation Department.
The removal of double stamp duty for commercial buyers was the right thing to do, for business and for general sentiment. It will not push commercial prices up, but it will bring investors back into the market. Best of all, it will free up operating capital for small and medium-sized businesses. That is good for residential market sentiment.
