2nd Round of Cooling Measures – More than Meet the Eye
Henderson Land has publicly stated its intention to donate agricultural land to provide young people with affordable property and the chairman of the New World also echoed to support the initiative. It is almost obvious that the super-rich are more than capitalistic; they also concern the difficulties that young homeowner-wannabe face. If the initiative were to set sail, it would be a big leap in extending supply of affordable properties in the market.
In the last week of February, Financial Secretary John Tsang Chun-wah announced another round of Cooling Measures. Unlikely his previous approach, Tsang admitted that developers were unaware of the 2nd round of Cooling Measures until its public announcement at the Press Conference. His statement aroused some speculations towards the determination of the government-developer relationship. Along came the non-responded tender for the Tin Shui Wai Development Project, some suspected that the relationship has officially been broken. If that’s the case, the government could become more active in leading the market, and housing policy would likely to gear towards improving housing concerns amongst the grassroots.
With the forecast for slower luxury consumption among mainland tourists, there seems to be limited growth in retail rental prices. This could ripple off to benefit not only retail tenant, but also ease further inflation which benefits both locals and tourists!
Unfortunately, however, this effective cooling measure has driven our property market into a new Ice Age. We can only hope that summer will be around the corner, sooner or later…
Published on 27th Feb, 2013