The writing was on the wall that the government would sooner or later introduce further measures to stabilise the property market. Many analysts had warned of 'policy risks' facing the market and intervention was effectively factored into the share price of developers.
While the increase in supply is expected, the further tightening of the mortgage ratio, a policy which for the first time targets buyers from outside Hong Kong, came as a surprise. But, as experts explain, the new measure is neither likely to stop cash-rich mainlanders, nor is it going to affect the luxury sector significantly.
Mainland investors' financial strength is further illustrated in our update on China property, with sales continuing to rise despite central government efforts to cool the market.
Another issue is the controversy over illegal structures. We have all read how senior officials and politicians had unauthorised work done to their homes. But there are people who know how to do this in the right way. In our cover story, we have invited some experts to explain how it is done.