Property Policy in Hong Kong Expected

Property policy in Hong Kong are tightened, following soaring property prices. This is a step to cool property prices are already overheating.

Hong Kong Chief Executive Donald Tsang on Wednesday (13/10/10) said that Hong Kong will increase the supply of homes and restrict the movement of people (immigration) on the basis of property investment.

In its annual policy announcement, Donald Tsang said the government will supply more land for about 20,000 individual apartment units in a year. Approximately 61 000 private homes will go to Hong Kong property market in 3 years to 4 years.

Tsang also said the government to temporarily restrict the movement of people because akabn property investment.

The shares of property companies in Hong Kong fell 3.2 percent after Donald Tsang delivered the announcement. The company's shares proeprti Asia's largest developer, Sung Hung Kai Properties Ltd., also fell 5.4 percent.

"Many people are afraid of property prices in Hong Kong that continues to rise every year. It's hard for citizens of Hong Kong to pay a deposit once did," said Tsang. "People expect the government to help them realize tentanh aspiration of home ownership," said Tsang again.

Property prices in Hong Kong rose 15 percent since early 2010. This increase was primarily due to lower interest rates and the purchase of property by rich men mainland. This is what causes the policy matter of property in Hong Kong tightened.