Editorial | End of curbs must not lead to return of Hong Kong property speculation
- Large supply of homes due to come online soon in Hong Kong will, hopefully, help thwart the rise of a new generation of speculators
Hong Kong property prices are among the highest in the world, and this remains the case despite a decade of highly successful controls that included capping loans to deter speculators and levying a hefty stamp duty on second homes, and an even bigger duty for non-residents.
So when the government decided to abandon those controls in February it was no surprise there were concerns about whether, or perhaps when, speculation would return to the market.
The government had strong reasons for ending the curbs, which also included a special stamp duty aimed at those who resell their homes within two years. They were put in place 10 years ago to cool speculation in a red-hot property market that was fuelled by cheap funding.
Then things changed.
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How Hong Kong's housing market became among the world’s most unaffordable
Along came the pandemic, high interest rates, and a sluggish economy, and the lingering bull market turned into a property slump, and so the government decided the restrictions had outlived their usefulness.
They were removed when Financial Secretary Paul Chan Mo-po revealed his budget last month.
