China News Service, Hong Kong, February 28 (Reporter Wei Huadu) The Financial Secretary of the Hong Kong Special Administrative Region Government, Paul Chan Mo-po, announced on the 28th that the property market will be fully "removed" (removal of residential property demand management measures). It has received support from all walks of life and believes that the measures will reduce the risk of buyers. The market entry cost will help the property market pick up.
On the afternoon of February 28, Financial Secretary Paul Chan Mo-po of the Hong Kong SAR government held a press conference to meet with the media on the new budget.
The picture shows Chen Maobo attending the press conference.
Photo by China News Service reporter Chen Yongnuo
When Chan Mo-po released a new government budget that day, he responded to the demands of the industry and announced that all residential property demand management measures will be revoked from now on. All residential property transactions will no longer need to pay additional stamp duty, buyer's stamp duty and new residential stamp duty.
The SAR government has introduced measures since November 2010, requiring buyers to pay an additional stamp duty ranging from 5% to 15% if they resell the residential property within 24 months after purchasing it; a buyer's stamp tax was introduced in October 2012. , non-Hong Kong permanent residents are required to pay a 15% buyer’s stamp duty when purchasing residential properties; a new residential stamp tax was launched in November 2016, which comprehensively increased the ad valorem stamp duty rate for residential property transactions to a flat 15%.
In recent years, the SAR government has timely adjusted its "hot tricks". In October last year, it shortened the applicable period of additional stamp duty from three years to two years, halved the rates of buyer's stamp duty and new residential stamp tax, and implemented a stamp tax for foreign talents purchasing properties. "Exemption first, tax later" arrangement.
However, the real estate industry believes that in the context of a weak economy, the stimulus measures are limited, and calls for a comprehensive "removal" are growing increasingly louder.
The reporter learned that after the "hot move" was withdrawn that day, real estate agency stores in various districts posted slogans hoping for a recovery in the property market, and many potential buyers also made appointments with real estate agents to look for residential units.
Liao Weiqiang, President of Lijia Ge Real Estate, believes that the "removal of spicy food" has restored the natural adjustment of the property market. He believes that people who have not yet purchased property, investors and mainland buyers will gradually return to the market, causing the transaction volume to return to a "healthier" level, which is really beneficial to the development of the overall property market. Good thing.
In the future, coupled with the fall in external interest rates, local economic growth, and the inflow of talent, it is believed that property prices will rebound throughout the year.
Wong Guangyao, vice chairman of Wheelock Real Estate, said that the comprehensive "elimination" has reduced the tax burden on buyers and stimulated Hong Kong and overseas people and investors to return to the market.
Will the "removal of spicy food" lead to the resurgence of "speculation" in the property market?
Most of the opinions expressed that they are not worried and believe that the current market situation is different from that of the past. There has been no "speculative trend" after last year's "reduction in spiciness". Nowadays, the property market needs capital inflows, coupled with factors such as interest rate cuts, it will rebound significantly.
"The current market interest rates are relatively high. The U.S. will not cut interest rates until late in the second quarter of this year at the earliest, and banks in Hong Kong will follow suit later. Demand will increase only then, so property prices will not rise significantly in the short term. In addition, On the one hand, the SAR government has acquired a large amount of land in recent years, and real estate developers have also held a large amount of unfinished goods, which shows that the supply of real estate is sufficient, so the 'speculation trend' is not expected to reappear." Yin Hui, a senior lecturer at the Department of Marketing at Hang Seng University in Hong Kong, told reporters.
On the same day, the Hong Kong Monetary Authority announced that it would adjust the countercyclical macro-prudential regulatory measures and other relevant regulatory requirements for property mortgage loans, including adjusting the mortgage loan-to-value ceiling for owner-occupied residential properties and non-owner-occupied residential properties, and suspending the implementation of the assumption that the interest rate of property mortgage loans will increase by 200 Basis point stress testing requirements.
Yue Weiman, President of the Hong Kong Monetary Authority, said that even if the above measures are introduced, Hong Kong's banking system will still have sufficient buffers to cope with the challenge of a sharp adjustment in property prices.
Appropriate adjustments to counter-cyclical measures can reduce the impact on public property trading activities. The bureau will introduce appropriate measures based on market conditions.
The Hong Kong Real Estate Developers Association said that the comprehensive "removal" will help the economy regain its growth momentum and restore the confidence of citizens and international investors in Hong Kong's economic prospects.
The measures taken by the Hong Kong Monetary Authority reduce the financial burden of home ownership on the public and benefit families in need of home ownership.
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