Cooling of property market necessary, says housing minister

The government had to introduce new measures in order to stop the residential property market overheating, Secretary for Housing and Transport Anthony Cheung Bing-leung said on Saturday.

“We all remember how the Asian financial crisis hit our economy in 1997. If the government does not intervene now, there is a chance the impact could be more serious than 1997 when the bubble burst,” explained Cheung.

The new measures, announced on Friday, include doubling stamp duties across the board for both housing and non-residential properties. Stamp duty for properties valued below HK$2 million will rise from HK$100 to 1.5 per cent of transaction values.

However, first-time buyers and those not owning other residential properties will be exempt.

Cheung said: “We are facing a red-hot property market and the risk of a bubble is rising.”

Executive Council member Barry Cheung Chun-yuen, who is also the chairman of the Urban Renewal Authority, said the new measures were unlikely to affect renewal projects.