Hong Kong Chief Executive Carrie Lam warned she must act quickly to rein in soaring property prices
Analysts say there are no immediate solutions, and that people must give time for new administration’s measures to take effect
Property analysts have called on Chief Executive Carrie Lam to treat Hong Kong’s runaway property prices as the new administration’s top priority, adding that realistic steps must be taken to release supply of land.
Record property prices have driven out multinationals from the city, and forced them to move their headquarters to cities such as Shanghai and Singapore. Mercer’s annual Cost of Living survey for expatriates showed Hong Kong to be the second costliest city in the world, with property prices the main contributor.
Ilya Bonic, senior partner and president of Mercer’s career business, says that Hong Kong, which dropped from the top spot in 2016, is the most expensive city in Asia as a result of its currency being pegged to the US dollar, which drove up the cost of accommodation.
Analysts say there is an opportunity for Hong Kong’s new leader to introduce measures to curb Hong Kong’s surging property prices.
Nicholas Brooke, chairman of Professional Property Services Group, says: “This is a good opportunity [to act on property prices], and one of the items highest on the new chief executive’s agenda.” She can’t ignore it, he adds.
But a change of administration is “no magic bullet”, Brooke cautions. “Whatever is put in train is going to be for the medium to long term. I don’t see any immediate solution. This is not about trying to curb demand. Any sustainable solution has to be supply-led and this inevitably means patience.”
