The decline in transaction volume in the Hong Kong property market has become a pressing issue. This decline not only affects developers and property agents but also directly impacts the entire industry chain and liquidity, posing challenges to the Hong Kong economy.
To tackle this issue, the Hong Kong government has taken various measures, such as reducing stamp duties and increasing residential supply. These initiatives aim to stimulate market activity, promote property sales, and contribute to economic recovery.
The downward trend in property prices in Hong Kong is also a current concern. In recent years, the Hong Kong property market has experienced a noticeable decline, with a cumulative decrease of approximately 23%. Cases of negative equity are on the rise, and a further decline in property prices could have adverse effects on society as a whole.
To stabilize the property market, the Hong Kong government has implemented a series of regulatory measures, including restrictive home purchase policies and enhanced market supervision. These measures aim to prevent a rapid decline in property prices and maintain market stability.
Both the financial market and the property market are pillars of the economy in Hong Kong. Recently, the stock market has shown weakness, with a significant decrease in stock trading volume and a reduction in funds raised through initial public offerings (IPOs).
Simultaneously, the property market is experiencing sluggish sales, with many developers struggling to sell their projects, and government land tenders facing difficulties. This has had a severe impact on the Hong Kong government's revenue, potentially leading to a fiscal deficit. To address this issue, the Hong Kong government needs to take measures to stimulate the property market, increase real estate sales, and boost the activity of land tenders to maintain fiscal stability.
Loosening regulatory policies can attract more funds, businesses, and talent. Recent policies introduced by the government, such as the "Pay First, Refund Later" policy for foreign talent and the halving of stamp duties, have received positive responses. This indicates that policies conducive to the development of the Hong Kong economy should have been implemented earlier. If regulatory measures had been relaxed earlier, the number of leading international enterprises in Hong Kong would likely be more substantial.
Therefore, the Hong Kong government should further optimize regulatory policies to attract more funds and talent into the Hong Kong economy, promoting sustainable economic development.