fbpx
Property
Currency HKD
Language
  • 繁中
  • Country Hong Kong

    China urges cities to cool overheating property market
    What’s the future of Hong Kong or Singapore real estate?


    China urges cities to cool overheating property market. “Shanghai and Shenzhen have erected new barriers last week to cool the property market. In Singapore, talks have intensified while the government is keeping a close watch on the property market,” Fred Poon, Director and Partner of Golden Emperor comments. “Hong Kong may implement more cooling measures on its largely resilient resale market, one similar to Singapore’s.”

    China’s deputy housing minister has urged authorities in major cities to take steps to curb property market speculation following a recent surge in residential real estate prices, state media Xinhua reported on Tuesday.

    During a visit to Shanghai and Shenzhen to inspect property markets, Ni Hong said city governments should uphold the principle that “homes are for living in, not for speculation”, and not use the real estate sector as a short-term stimulus for economic growth, Xinhua quoted him as saying.

    The financial hub of Shanghai last week imposed tougher rules on home purchases and taxation, while the southern tech hub of Shenzhen vowed to step up the scrutiny of the source of capital for home buying.

    The head of Beijing’s housing authority also said on Monday a top priority this year was to ban the illegal flow of funds into the property market for speculation, local media reported.

    Talk intensifies of more private property cooling measures in Singapore

    Deputy Prime Minister and Finance Minister Heng Swee Keat said on Monday (Jan 18) that the government is paying “close attention” to the local real estate market “to ensure that it remains stable”. As the economic outlook remains very uncertain, he added that “we do not want to see the property market run ahead of the underlying economic fundamentals.”

    To counter the impact of ample liquidity and a low interest environment that have lifted asset prices, DBS analysts suggested that the government could further “tweak additional buyer stamp duties for investors and foreigners as it has been shown to slow the pace of price increases,” tightening mortgage terms and adjust up the average minimum home size for new developments.