Norman Chan says higher rates on the way
Leading today’s Hong Kong real estate news, more details have surfaced regarding the proposed vacancy tax, as the city considers collecting the fee on occupied homes via an existing tax channel to save a few bucks.
Also in the headlines, Hong Kong Monetary Authority Norman Chan said that bank interest rate hikes are on the way in Hong Kong, and property agency Centaline predicts that home price growth will slow later this year. All of today’s excitement around the SAR’s property market is in our list, if you just keep reading.
Details on Vacancy Tax to be Released This Month
The government is set to unveil details this month of a vacancy tax on property owners hoarding newly built flats that remain vacant, as it seeks to find immediate as well as longer-term solutions to ease the city’s acute housing shortage.
A government source said the tax would be collected through an existing channel which would save administrative costs, but it was yet to be decided whether it would be in the form of a rates charge. Read more>>
HKMA Chief Says Rise in Prime Rate is Just a Matter of Time
The Hong Kong Monetary Authority chief executive, Norman Chan Tak-Lam, said today it was only a matter of time before Hong Kong’s lenders raised the prime rate.
The outflow of capital in Hong Kong will support the asset markets including the property market in the future, but will also bring volatility, he said, adding that investors should pay attention to risks. Read more>>
Home Price Growth to Slow Down in Second Half This Year: Centaline
Estate agents forecast that home prices will climb at a slower pace at 5 percent in the second half of the year, while the home purchase affordability ratio would likely worsen to 70 percent next year.
Centaline Property yesterday forecast that home prices would increase 17 percent over the full year, with a 12 percent increase in the first half, according to Wong Wai-hung, chief executive for Asia Pacific of the group. Read more>>
Area For Disneyland Expansion Might be Used For Short-Term Events
Idle land earmarked for the future expansion of the Hong Kong Disneyland theme park could be used for short-term entertainment events if needed, the government said on Wednesday.
However, modular housing, as suggested by a lawmaker, would not be considered as it was more of a long-term project and “not compatible” with the use of the reserved land, Secretary for Commerce and Economic Development Edward Yau Tang-wah told a Legislative Council meeting. Read more>>
CK Hutchison Buys Aussie Gas Pipelines Company APA Group For $10B
Victor Li Tzar-kuoi has embarked on his second major project in the space of a week, after recently taking over the reins of Hong Kong conglomerate CK Hutchison from his famous billionaire father Li Ka-shing.
Under Li the younger’s leadership a joint proposal from CK Asset Holdings, CK Infrastructure Holdings and Power Assets Holdings is offering A$13 billion (US$9.9 billion) for Australian gas pipelines company APA Group, according to a filing to the Hong Kong stock exchange. Read more>>
Tune in again later for more Hong Kong news, and be sure to follow @Mingtiandi on Twitter, or bookmark Mingtiandi’s LinkedIn page for headlines as they happen.
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