Hong Kong has announced a series of measures to boost the property sector, including removing decades-old restrictions that were put in place to prevent a property bubble. in the real estate market. The move comes as part of efforts to revive an economy that has been hit by a record drain of talent and an economic slowdown in mainland China.
Paul Chan, the city's financial secretary, said in his annual budget speech that Hong Kong would remove all restrictions on home purchases and stamp duty on property transactions. Cancellation will be effective immediately.
„We believe that in the current economic and market conditions, appropriate measures are no longer necessary,” — Chan told the city legislature.
These taxes were introduced in 2010 to cool the city's once-red-hot real estate market, which was the backbone of the economy. At the time, officials were concerned about the “bubble”. in a housing market where prices are rising above levels generally considered reasonable or sustainable. The government will now also ease its real estate lending policy to stimulate housing demand.
Real estate and related industries play a key role in Hong Kong's economy, accounting for one-fifth of the city's gross domestic product (GDP). The income from the sale of land represents about one fifth of the income of the state budget.
Since last year, real estate prices have undergone a correction. Through January, the government's house price index had fallen for nine straight months, its longest losing streak in two decades. As of last month, it is down 23% from its peak in September 2021.
Hong Kong's economy has struggled to regain momentum since reopening after more than two years of self-imposed coronavirus lockdown. Its GDP grew by 3.2% in 2023, thanks to a low base in 2022, but fell short of market expectations. The initial boom in tourism and consumption faded within months of its opening.
In addition to a sluggish housing market, Hong Kong is also facing a record drain of talent and a battered stock market. The Hong Kong stock market, where many of China's largest and most important companies are listed, has become less popular with international investors.
You can see detailed statistics on average property prices in Bulgaria by cities and neighborhoods HERE