The government of Hong Kong has moved to head off a property price bubble.
It has promised to increase the housing supply and will restrict a scheme under which people – mostly from the Chinese mainland – can get permanent residence in Hong Kong if they invest at least 230,000 euros in property.
The head of Hong Kong’s government Donald Tsang said: “Normally the market will adjust itself to demand for land. But if there is an upsurge in residential apartment prices … the government will auction land that is suitable for building various types of residential flats, including small and medium size units, to stabilise prices.”
The cost of a home in Hong Kong has risen by over 45 percent since the start of last year which has priced many poorer residents out of the market.
That has led to anger and protests, including one at the recent government land auction of a prime residential site in Kowloon.
The protesters interrupted bidding; they waved banners and shouting about sky high property prices and what they called a ‘property monopoly’.
The measures announced by the government initially caused property company stock to slump, but share prices recovered when it was realised the curbs were not that drastic.