Hong Kong panorama from Victoria Peak*

The surge of wealthy mainland Chinese property buyers has prompted further measures from the Hong Kong government. According to recent reports, the Hong Kong government will be implementing restriction on certain properties, such that only residents of Hong Kong proper can purchase these.

This comes on the back of several rounds of property cooling measures, including additional stamp duties and transactional taxes. Clearly, the Hong Kong government is concerned that the city’s 7 million residents will be priced out of their homes by buyers from mainland China.

Meanwhile, we’re quite safe here in Singapore; or are we? China may not be a short border hop away, but a three-hour flight is no obstacle to the very wealthy. Should the supply in Hong Kong be further constricted, there will definitely be a significant portion of buyers who will look upon Singapore as an alternative.

With increasing globalisation, borders have become more transparent, and ripple from one side of the pond can easily travel to the other side. Perhaps it is time to take another look at our housing policy and assess its adequacy, or lack thereof. Alternative solutions may be required if we are ensure housing for all Singaporeans.

Stay tuned in the coming weeks, as we prepare to address this issue.

*Image courtesy of Chensiyuan, via Wikimedia Commons

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  3 Responses to “Hong Kong Takes Action To Protect Residents”

  1.  

    According to some experts, restrictions on foreign ownership of certain properties will probably not result in any fall in the price, although such restrictions may result in a reduction in trading volume.

    •  

      @George
      Hi George, thanks for sharing this information with us. It’s certainly plausible that the restrictions will only reduce trading volume, without having the intended effect of cooling the market.
      However, even a reduction in volume could have significant impact on the Singapore market. A reduction in number of transactions means that many would have been deterred from their purchase in HK. Singapore would then be one of the likely alternatives.

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