Absent bold new measures, the city’s housing market is likely to remain under pressure, with home values hovering near their lowest since 2016
[HONG KONG] Hong Kong’s leader said the city will accelerate the development of a cross-border tech hub with China as the Asian financial centre searches for new growth drivers.
Chief executive John Lee said that he will lead a new committee to expedite the plan for the so-called Northern Metropolis at his annual policy address on Wednesday (Sep 17). His administration will cut red tape and introduce new laws to “fast-track” the development of the now sparsely populated region first proposed in 2021.
To do that, the government will adopt “safe, cost-efficient, and time-saving construction methods, materials, and equipment from different jurisdictions”, Lee added.
Lee also vowed to use AI to improve efficiency, including using the technology to provide public services and promoting its application in the government and across sectors.
The city’s economy has shown tentative signs of recovery in recent months, although China’s slowdown and geopolitical uncertainties continue to cast a cloud on Hong Kong’s growth outlook.
The property industry proposed measures to boost the real estate market, but initiatives discussed, such as easing capital flows for mainland buyers or cutting stamp duties, are not on the agenda, according to the newspaper Sing Tao.
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Instead, the administration may revive the long-dormant Tenants Purchase Scheme, which allows public housing residents to buy their flats at discounted prices, RTHK reported. First launched in 1998, the programme could help more locals climb the property ladder.
A reported plan to relax the quota for non-local college students could boost demand for apartments, according to Bloomberg Intelligence’s Patrick Wong.
Absent bold new measures, Hong Kong’s housing market is likely to remain under pressure, with home values hovering near their lowest since 2016.
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The US Federal Reserve’s expected interest-rate cut this week may provide some relief, although the pace of further reduction remains unpredictable. BLOOMBERG
