Hong Kong finance chief says ‘no plan or intention’ for authorities to either scrap property cooling measures or intervene in market
- Financial Secretary Paul Chan says government cannot see any risk of property market ‘falling off a cliff’, adds policy not affected by ‘short-term fluctuations’
- Authorities ‘cautiously optimistic’ regarding performance of local economy during second half of 2022, provided epidemic situation is under control, he adds
There is “no plan or intention” for the Hong Kong government to either scrap cooling measures or intervene in the property market despite short-term fluctuations, the city’s finance chief has said.
Financial Secretary Paul Chan Mo-po on Sunday also said that while it was possible the city would raise the prime interest rate if the United States continued with its own increase next month, he hoped the deposit rate would also be increased.
“We have no plans, no intention [to support the residential property market]. I don’t think there is such a need. This is very clear. I have studied many figures and different situations in the property market,” Chan told a radio programme.
“We can’t see the property market has any risk of ‘falling off a cliff’. Often there are slight fluctuations. Our policy direction and aims are not affected by short-term fluctuations.”
With authorities aiming to help residents buy their first flat, Chan said cooling measures for the property market needed to be maintained.
The government has implemented cooling measures for more than a decade, including the buyer’s stamp duty – a 15 per cent tax on property transactions imposed on non-permanent residents – as well as the double stamp duty, a tax imposed on residential purchases except by first-time buyers.
“The government has been doing it right and there is a need to continue,” he said.