Living in Hong Kong is never an easy thing if you don’t have enough money to offer. The home prices in Hong Kong have surpassed the peak hit in 1997.
According to the Wall Street Journal, Hong Kong Chief Executive Donald Tsang considers resuming a controversial subsidized housing program, people familiar with the matter said Saturday, as pressure from local and Beijing officials to tame soaring property prices in the city mounts.
A resumption of the Home Ownership Scheme abandoned in 2003 after developers complained about government interference in the property market in private residential prices, would represent the government’s boldest attempt yet to quell sizzling prices. In fact, Hong Kong home prices have risen around 14% so far this year on top of a 24% jump in 2010.
Mr. Tsang had allowed residents to buy homes at a discount of as much as 40% to market levels. “The chief executive may address the issue of subsidized home ownership in the upcoming policy address but the issue has to be considered together with ways to increase land supply in Hong Kong,” a representative from Mr. Tsang’s office said Saturday.
A recent visit to the territory from the top Chinese government official in charge of Hong Kong affairs, Wang Guangya said the local government needs to pay particular attention to the housing problems of low-income people. “As a government, more efforts should be spent on housing issues of the general public, particularly the underprivileged. Housing is both a social and economic issue, and if it’s not handled well, it becomes a political issue,” Mr. Wang said.
They also follow a decision by Hong Kong’s de-facto central bank to tighten mortgage lending again and for the first time toughen lending standards for nonlocals, one day after a luxury residential site was sold for 11.65 billion Hong Kong dollars (US$1.49 billion), the city’s second-highest price for land sold at an auction.