Not the right time to help those priced off Hong Kong property ladder as that is market meddling, finance chief Paul Chan says
- Finance secretary stands ground despite coming under fire from critics who say latest budget does little to tackle city’s housing crunch
- He argues that measures can come any time later, but it would be irresponsible to roll out policies now
Hong Kong’s finance chief has said it is not the right time for new measures to help residents priced off the city’s property ladder, even as critics slam his latest budget for doing little to ease the housing crunch.
Financial Secretary Paul Chan Mo-po said there were no immediate plans to loosen mortgage ratios or offer further concessions to first-time buyers, as it would be irresponsible and perceived as the government meddling in the market.
“We don’t want to, especially when property prices are still so high, help those with weaker financial ability hop on [the ladder] ... because if the market drops, they will be the first to be affected,” he said in a television interview on Sunday.
“Another consideration is timing. On one hand, we don’t want to pour oil on fire in terms of the housing market. And on the other, we don’t want to give the impression that the government is propping up the market.”
We don’t want to give the impression that the government is propping up the market
Chan said such measures could be implemented at a later time, depending on how forces played out. “People may not have to wait for the next budget or policy address,” he said.
Since presenting his 2019-20 budget last week, the minister has been criticised for scrimping on relief measures, arguing instead for fiscal discipline and warning that the government would face a deficit next year if it shelled out all its projected HK$58.7 billion (US$7.5 billion) surplus for 2018-19 on sweeteners.
Lawmakers and residents have hit out at Chan, accusing him of not doing enough to address the city’s pressing housing issues.
On this matter, Chan acknowledged public concerns over affordability, with fewer private flats to be built over the next few years.
