land118
10-06-11, 23:08
http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/1134437/1/.html
Hong Kong finance chief warns on property prices
Posted: 10 June 2011 1647 hrs
HONG KONG - Hong Kong's finance chief said Friday the risk for people entering the territory's property market was "higher now than ever" as he announced new measures to tame runaway prices.
"This situation is rather unusual -- the property market trend is hard to predict," Financial Secretary John Tsang said.
"I urge citizens to think twice before entering the property market, as the risk is higher now than ever," he added.
Tsang said the government of the quasi-autonomous city was working to control ever-rising prices amid growing disquiet among the seven million-strong population over the rocketing cost of owning a home.
"The current market situation requires us to boost efforts in two respects. One is increasing land supply, the second is strengthening risk management in bank systems," he said.
"We will do both to ensure a healthy and stable development in the property market."
The southern Chinese city has imposed new taxes and staged a series of land auctions in the past year-and-a-half to boost supply and bring down property prices.
Tsang's remarks come a day after a Hong Kong auction fell below record price forecasts for a sprawling residential site, with analysts saying government measures to cool the real estate market may be taking hold.
The property in Hong Kong's central Mid-Levels district sold for HK$11.65 billion (US$1.5 billion), below estimates that it could fetch between HK$12 billion and HK$15.2 billion -- and set a new city land auction record.
But another smaller plot in the city's New Territories fetched a sale price at the higher-end of estimates at the auction, suggesting officials still have work to do.
Two previous land sales earlier this year sold at the top of market expectations, or even surpassed pre-sale estimates.
Tsang said the Hong Kong Monetary Authority, the city's de facto central bank, was expected to announce its measures to tighten mortgage lending later Friday.
Meanwhile, speaking to the press on Friday, Carrie Lam, the secretary for development, said the government will release eight sites for sale in the coming three months to cool the real estate market.
That will provide some 6,000 units, or double the number in the period from April to June, with the new sites intended for a mix of hotel, commercial and residential development.
"Since the beginning of this year, we have adopted a very progressive attitude towards land supply, whether it is for residential or commercial development," Lam said.
"We have seen very heated transactions in the high end luxury houses...there's no reason for us not to continue selling (land for luxury flats) to meet this demand," Lam told reporters.
The government will require developers to provide a minimum number of flats on some of the sites.
Despite the earlier measures, some existing properties are still fetching top-end prices with the home of France's top diplomat selling last month for a whopping HK$580 million.
A study by US consultancy Demographia in January found Hong Kong's home prices were the least affordable in the world.
- AFP/ir
Hong Kong finance chief warns on property prices
Posted: 10 June 2011 1647 hrs
HONG KONG - Hong Kong's finance chief said Friday the risk for people entering the territory's property market was "higher now than ever" as he announced new measures to tame runaway prices.
"This situation is rather unusual -- the property market trend is hard to predict," Financial Secretary John Tsang said.
"I urge citizens to think twice before entering the property market, as the risk is higher now than ever," he added.
Tsang said the government of the quasi-autonomous city was working to control ever-rising prices amid growing disquiet among the seven million-strong population over the rocketing cost of owning a home.
"The current market situation requires us to boost efforts in two respects. One is increasing land supply, the second is strengthening risk management in bank systems," he said.
"We will do both to ensure a healthy and stable development in the property market."
The southern Chinese city has imposed new taxes and staged a series of land auctions in the past year-and-a-half to boost supply and bring down property prices.
Tsang's remarks come a day after a Hong Kong auction fell below record price forecasts for a sprawling residential site, with analysts saying government measures to cool the real estate market may be taking hold.
The property in Hong Kong's central Mid-Levels district sold for HK$11.65 billion (US$1.5 billion), below estimates that it could fetch between HK$12 billion and HK$15.2 billion -- and set a new city land auction record.
But another smaller plot in the city's New Territories fetched a sale price at the higher-end of estimates at the auction, suggesting officials still have work to do.
Two previous land sales earlier this year sold at the top of market expectations, or even surpassed pre-sale estimates.
Tsang said the Hong Kong Monetary Authority, the city's de facto central bank, was expected to announce its measures to tighten mortgage lending later Friday.
Meanwhile, speaking to the press on Friday, Carrie Lam, the secretary for development, said the government will release eight sites for sale in the coming three months to cool the real estate market.
That will provide some 6,000 units, or double the number in the period from April to June, with the new sites intended for a mix of hotel, commercial and residential development.
"Since the beginning of this year, we have adopted a very progressive attitude towards land supply, whether it is for residential or commercial development," Lam said.
"We have seen very heated transactions in the high end luxury houses...there's no reason for us not to continue selling (land for luxury flats) to meet this demand," Lam told reporters.
The government will require developers to provide a minimum number of flats on some of the sites.
Despite the earlier measures, some existing properties are still fetching top-end prices with the home of France's top diplomat selling last month for a whopping HK$580 million.
A study by US consultancy Demographia in January found Hong Kong's home prices were the least affordable in the world.
- AFP/ir