My Take | Short-term fixes for soaring house prices are not the answer
Cooling measures do not address the fundamental problem of too much demand and too little supply
In Hong Kong they are referred to as “spicy” measures, but bland or flavourless might be a better description.
Housing chief Anthony Cheung Bing-leung and Chief Executive Leung Chun-ying made a show this week of finally closing a loophole for property speculators which could have been shut almost six months ago.
They had barely finished making the announcement when Cheung Kong’s new estate, Harbour Glory in North Point, practically sold out in five hours.
The developer even offered a special queue for buyers of three or more units, precisely the kind of people the latest measure targets. The loophole had allowed buyers of multiple flats to pay 4.5 per cent stamp duty as a single transaction, instead of 15 per cent on each flat.
Leung and Cheung need to be seen doing something. But they should admit they are out of bullets, and property prices are still going up. Spice or no spice, such measures are now irrelevant, if not harmful.