Agent industry queried the effect and estimated property market in situation of price up volume down.

Government try to stop the rising of property price, but industry believed it only take effect in short term not in long term. Chen Kun-xing, the executive director and housing department chief executive of Midland group said: “ There no sign of factors that property price falls if no effect from global factors (refer to America increase interest).” It is estimated that investors will treat the higher tax terms as “normalization” measures and arrange to go into the market again after a few months. It is predicted the yearly property price this year still rises at single-digit number. New projects will be trapped easily and intention of changing old house for new house will decrease. Chen Kun-xing expressed, more than a million of owners in HK will have mentality of “ stay better than move” after “ strict measure” launched. Their intention of changing old house for new house also sharply decreased. He said, government’s former measures already took effect and current property price’s rising speed already slow down. It is estimated that measure of this time will have same effect. The property trading volume in future will decrease. But property price will possible “ falls ostensible but rises confidentially.” The yearly rising will at speed of single-digit number until America increasing interest. Chen Kun-xing criticized, government’s measures which suppressed the demand of property market these years already seriously disturbed the running of property market. Strict measure this time impacted residential property market and the effect especially larger to new project market. Although government expressed people who change house have 6 months of grace period, but the average pre-sale period of new projects that launched in the past half year was about 19 months. It is far exceed the grace period and made citizens’ intention of buying new house decreased. And it also may affect the developers’ selling arrangement. Finally will cause the supply of new and second hand property decreased. He pointed, current some projects have long pre-sale period such as Upper West which has pre-sale period up to 36 months. They far exceed the grace period. So new measure made house changing customers easily dragged by tax because of long pre-sale period. And their intention of buying house is suppressed. It will decrease the trading volume of changing old house for new house. Advocate extending the grace period and free BSD for HK company. Huang Zi-hua, the executive director and managing director of Midland also expressed, HK government launches measures more frequently. Plus with measure this time, there have been 9 measures which used to suppress market demand since October 2009. The region of influence is larger and larger. In fact, it is less than 4 months since BSD was launched. So the influence will continue. And trading volume increasing in January this year was the expression of purchasing power being released. But the trading volume shows down trend recently. Government launching measure again at current period will disturb the normal running of the market. Property market disturbed by strict measures again and again may possibly cause after-effects. Huang Zi-hua added, Singapore although launched strict measure January this year, but their last measure was launched more than one year before. HK government launched measures urgently and frequently in the past half year. It affected the stability and health of the property market. He understand it is a certain degree of necessary for government to launch measures. But he appealed government review the new measure and improve the program such as extending grace period, free BSD for HK company buying property, and grace period for rebuilding of old property to strengthen the property market’s stability.

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