-
Advertisement
Hong Kong property
Business

Easing of cooling measures is not a cure-all for Hong Kong’s struggling property market, say analysts

  • Any relaxation of the government’s cooling measures will only slow down the decline in homes prices but not reverse the trend, says DBS Bank analyst Jeff Yau
  • Chief Executive John Lee is expected to unveil many measures in his inaugural Policy Address to revive Hong Kong’s struggling economy

Reading Time:3 minutes
Why you can trust SCMP
4
Hong Kong’s home prices are expected to fall 30 per cent by the end of next year, according to a forecast by Goldman Sachs. Photo: Sam Tsang
Lam Ka-sing
The potential easing of cooling measures anticipated in Chief Executive John Lee Ka-chiu’s maiden Policy Address will stimulate housing demand but not necessarily lead to a quick rebound in prices because of the prevailing headwinds, according to analysts.

Lee is expected to announce several groundbreaking measures in his address on Wednesday, aimed at reviving the city’s battered economy. Property developers and agents have been lobbying the government to scrap legacy stamp duties.

Analysts have not ruled out the possibility of the government relaxing some of its measures to cool the property market in the event of a sharp correction. However, its impact on steadying prices will be felt gradually, they added.

Advertisement

“After the relaxation, it does not mean the housing market will rebound tomorrow,” said Jeff Yau, group research executive director at DBS Bank (Hong Kong). “I believe the extent of the decline will slow down.”

Chief Executive John Lee Ka-chiu will deliver his maiden Policy Address on Wednesday. Photo: Sam Tsang
Chief Executive John Lee Ka-chiu will deliver his maiden Policy Address on Wednesday. Photo: Sam Tsang

If the cooling measures are dropped, the price decline may slow down but the trend will not be immediately reversed, he added.

Advertisement
Advertisement
Select Voice
Select Speed
1.00x