12/7/2018-3

Cai Hongxing: Housing policy falls into heavy medicine

Cai Hongxing, executive director and chief executive officer of Huasheng Group, said that the new housing measures introduced by the government earlier, including the levy of double-rental vacant tax and the conversion of private land, are “heavy drugs" for developers, increasing costs, or Reduce the profits of developers.

Refers to vacant tax as a percentage of property price 5%

Earlier, the government announced six new housing measures. In terms of vacant tax, the government intends to levy a vacant tax on units that have obtained occupation permits and vacant for one year. The tax is twice the taxable value of the property, accounting for about 5 %.

In accepting the interview, Cai Hongxing said that the tax amount is quite heavy for developers. “5% is definitely not a trivial matter, especially for large luxury flats. The price of the property is quite large and the tax involved is also high, which increases the cost of the developer." He said.

He pointed out that from the previous hot-selling measures launched by the Government, the results achieved were very small. The Government should not put too heavy a drug on the commodity market. Since each policy is implemented, it will be difficult to turn back and consider the current market. The demand for home ownership is still strong, and the Group’s existing remnant units are only about 100 gangs (based on the occupation papers). Even if the vacant tax is introduced, there is no plan to reduce the price. Understand that the vacant tax will not solve the problem of the current supply shortage in the property market. The demand for housing is still strong and the property prices are still under increasing pressure.

No. 3 Robinson Road

In the market, there may be developers who levy taxes or worry about the project “selling and buying." The Group will launch a market leasing at 3 Robinson Road in the Western Mid-Levels. He stressed that the project was originally intended to be rented and there was no change in the plan due to vacant taxes.

In addition, the Government intends to convert nine private residential sites in East Kowloon into public housing developments, including the Kwun Tong Anderson Road Quarry Development Area. Coincidentally, Hua Wei successfully obtained a site in Anderson Road earlier this year. The land price is about 3.1 billion yuan. The land price per floor is 12,000 yuan. At that time, it was a high price transaction. Is this unfair to the group? According to Cai Hongxing, this will not affect the Group’s sales arrangements. I believe that buyers of real estate will not have the idea of ​​not wanting to live in the same district as the grassroots of public housing.