The Wall Street Journal published an article title "New Rules Hit Hong Kong Property" which takes a look at the current climate of and regulations on real estate and property development in Hong Kong. Irina Fan, senior economist at Hang Seng Bank, said "despite the recent measures to cool the property market by the Hong Kong government, the rises in the private rentals will likely continue until the middle of next year as rental movements are lagging property prices." An excerpt from the article:
On Friday, the Hong Kong government slapped additional stamp duties on properties that are resold within two years and raised down-payment requirements on high-end home purchases. On Monday, government inflation figures showed Hong Kong property prices were up 15% in the January-September period, after a 30% surge in 2009.
Unlike previous measures enacted by the Chinese territory to cool prices, the new ones are considered more likely to have an immediate effect. DBS Vickers said it expects transaction volume could shrink 30% to 50% in the next three months as short-term speculators are driven out of the market. Other prospective home buyers, including genuine home seekers, are likely to adopt wait-and-see approach in anticipation of lower home prices.
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