Transcript of remarks by STH
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Reporter: Mr Cheung how is the latest measures trying to stop the multiple properties, is it effective to curb the property prices?
Secretary for Transport and Housing: The whole purpose of tightening up the exemption arrangements for Hong Kong permanent residents acquiring more than one property under one instrument is to prevent those really investment demand getting around the new 15 per cent stamp duty. Of course, once this tightening up measure has been announced, the effect has been realised, because anyone who acquires multiple properties under one instrument will be subject to the 15 per cent stamp duty. The whole purpose of the stamp duty is to give priority to genuine home owners who would like to acquire property for their own consumption, so those investor buyers would have to bear higher transaction cost and this is one way to manage the demand. We think that we have achieved that purpose. Of course, in terms of the overall level of prices, I am afraid prices are affected by the demand and supply situation. In Hong Kong right now, because demand is still very robust and supply is still lagging behind demand for various reasons, and we are in a global environment where interest rate is very low and credit is so easy to get, so there is lots of money getting around whether in Hong Kong or other cities, we all face the problem of higher housing prices. And in the case of Hong Kong, depending on how the global environment turns out, we have to double our efforts in making more supply available and that is the most challenging task for any government, whether this government or the next government.
(Please also refer to the Chinese portion of the transcript.)
Ends/Saturday, April 15, 2017
Issued at HKT 13:46
Issued at HKT 13:46
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