Multi-pronged increase in supply to ease the rally in property prices
When the government announced the latest property price index, property prices hit a new high in 18 months, it is clear that the supply of private buildings in private buildings will not be able to reverse the expected increase in property prices although the land supply will be up-to-standard this year. The government should increase land and simplify examination and approval procedures to speed up the introduction of units so as to ease the upward trend.
Quarter of the property prices rose 1/4 Hong Kong government can not stand it
According to the latest statistics released by the Rating and Valuation Department, property prices rose 0.27% MoM in September, showing a small increase in a single month but a 25% increase in 18 months. The increase is not scary. However, the index of property prices is set to hit a record again. As the public are still watching the policy of Chief Executive Sir, in September, the report does not cover much of private property. Prospective purchasers have released the accumulated purchasing power so that the first- Trading brisk, individual real estate prices hit a record high.
According to the past demand management measures, the Hong Kong Government will increase spicy prices when property prices rise by more than 2% in two consecutive months and the sharp increase in investment demand such as double stamp duty transactions. According to this, in the short term, it is still not the time for the Government to increase spicy food. However, the Government should not stand by and watch over the hot weather in the property market.
It is not time for demand management measures to increase. The Hong Kong government should start with the supply. In particular, Lin Cheng has always stressed the need to deal with the property market from the supply side. This at least three aspects.
First, the supply of private-owned land for the first three quarters of this fiscal year has reached the full-year target. However, the property market has been facing the problem of easy ascent and decline. The sales volume in the first three quarters of this fiscal year has reached as high as 17,000, a record high since record high The property prices continued to rise, which also reflected that the supply of private buildings in 18,000 units each year has been unable to meet the demand. In this case, the Hong Kong Government has already left some room for improvement because of developers’ compensation for land prices. It is indeed necessary to push land and increase public confidence in the supply of flats in the next few years without hurrying into the market.
Pre-sale pre-release room to extend the supply of pre-release
Second, to streamline procedures such as building planning so that more units should be available as soon as possible. In his election campaign, Lam proposed speeding up the land development approval process, including the technical definitions and approval criteria between the UTO, the Lands Department and the Buildings Department, so that the flow of approval and application for moving paper to the pre-sale of uncompleted flats was obtained Combing, the process becomes smoother, so that the project can be launched as soon as possible. Relevant work should be expedited to speed up the supply of flats.
Thirdly, the authorities can further consider extending the pre-sale period for private buildings. In 2013, in order to increase the supply of building materials, the government extended the pre-sale period of flats from 20 months to 30 months. If further relaxation of the supply of flats, the supply of flats will be increased to meet the market demand in the future. This can be released to the market even more. The authorities are determined to provide more information on the supply of flats as soon as possible.
At present, the factors that have contributed to the property market have not changed. The government will not be able to reverse market expectations within a short period of time. However, at least the public will have more and more confidence in the supply and will help ease the property market rally.