\nThe Hong Kong government is to closely monitor the residential property market which is fears is in danger from a price bubble.\n<\/p>\n
\nIt may even release more land to deflate prices, according to Donald Tsang, the city\u2019s chief executive.\n<\/p>\n
\nHis warning comes just after Henderson Land Development revealed that it sold a duplex apartment for HK$439 million, a record price.\n<\/p>\n
\n\u2018The relatively small number of residential units completed and the record prices attained in certain transactions this year have caused concern about the supply of flats, difficulty in purchasing a home, and the possibility of a property bubble,\u2019 Tsang told the Legislative Council.\n<\/p>\n
\n\u2018The government will closely monitor market changes in the coming months.\n<\/p>\n
\nWhen necessary, we will fine-tune land supply arrangements with a view to quickening the pace of bringing readily available residential sites to the market,\u2019 he said.\n<\/p>\n
\nDemand for property has surged this year, particularly for luxury units, putting pressure on the government to free up more land, which it tightly controls.\n<\/p>\n
\nThe government has not held any residential land sales for around 18 months.\n<\/p>\n
\nStrong demand from wealthy mainland Chinese buyers, who account for around 11% of sales, is driving up prices according to Nomura. \u2018Strong liquidity, low supply, strong external demand and aggressive mortgage lending are creating ideal conditions for another housing bubble in Hong Kong,\u2019 said Nomura property analyst Paul Louie.\n<\/p>\n
\nLast year, the fewest apartments were completed since at least 1972. Prices, especially for luxury homes, have rallied in 2009 on record-low interest rates and an influx of money from China.\n<\/p>\n
\nThe government is Hong Kong\u2019s biggest provider of land and has altered supply to support or depress prices.\n<\/p>\n
\nTsang is probably also concerned that a luxury real estate boom could hike up prices in the affordable housing sector.\n<\/p>\n
\n\u2018He\u2019s more concerned whether mass-market housing prices would get pulled up by the momentum in the luxury market.\n<\/p>\n
\nIf that happens it will become a social issue,\u2019 said Wong Leung-sing, an analyst with Centaline Property Agency.\n <\/p>\n
\nTsang also announced policy changes aimed at promoting the redevelopment of old industrial buildings, which have fallen into disuse as companies use cheaper factories in China instead. <\/p>\n","protected":false},"excerpt":{"rendered":"
\nThe Hong Kong government is to closely monitor the residential property market which is fears is in danger from a price bubble.\n<\/p>\n
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