Hong Kong’s economic outlook has been improving, with a marked increase in the city’s property sales and a significant rebound in the stock market, Financial Secretary Paul Chan has said.
On his official blog on Sunday, Chan wrote that the total number of residential property sales had bounced back, with sales in April totalling 8,551 – a more than 115 per cent increase from last March’s figures.
The price index for private residential properties rose by one per cent in March, according to the Rating and Valuation Department, marking an end to a downward trend that began in May 2022.
The rise was attributed to the withdrawal of home buying curbs in February and expectations that interest rates had reached their peak, Chan said.
The finance chief said Hong Kong stocks saw a big rebound as well, with the benchmark Hang Seng index reclaiming 19,000 points in middle of March, recording the highest level in nine months.
Earlier this year, the index plunged to lows not seen since the 1997 Handover.
“Overall, the macroeconomic situation in Hong Kong is improving, and the fiscal position is stable…” Chan wrote in Chinese.
However, the catering and retail industries were facing challenges, Chan said, attributing the difficult times to the “changing consumption habits of local people and tourists.”
The finance chief said Hong Kong plans to host more “mega events” to boost tourism and to provide more options for consumers in the second half year.
Struggling property market
Hong Kong has seen a struggling property market since early 2022, with slumping sales figures and prices in the residential property market.
2023 saw 43,002 property sales in all – a 42 per cent decrease compared to 2021.
This year, Chan announced plans to axe all extra stamp duties from late February onwards in a bid to revive the housing market.
When he delivered his budget in February, he said in Cantonese: “After prudent consideration of the overall current situation, we decide to cancel all demand side management measures for residential properties with immediate effect, that is, no Special Stamp Duty, Buyer’s Stamp Duty, or New Residential Stamp Duty needs to be paid for any residential property transactions starting from today.”
According to the invest bank JP Morgan Chase, the policy may result in sale figures rising by 30 per cent in 2024, while the price index will may still drop by 5-10 per cent as investors take a cautious stance on the property market, HK01 reported.
Help safeguard press freedom & keep HKFP free for all readers by supporting our team
