Saudi Press

Saudi Arabia and the world
Friday, Aug 22, 2025

Easing mortgage caps alone is not the answer to Hong Kong’s housing conundrum

Easing mortgage caps alone is not the answer to Hong Kong’s housing conundrum

The key to affordable homes remains in boosting land supply, a goal that the government should not take its eyes off.
Hong Kong’s housing conundrum is here to stay, despite new measures introduced in the chief executive’s policy address to ease rules on mortgage caps. Soon after the measures were announced, prices and the number of sales of homes surged. Whether this is a positive turnaround remains to be seen. With the market still clouded by the ongoing social unrest, the prospect for homebuyers is anything but clear.

The government is under growing pressure to intervene as the protests triggered by the now-withdrawn extradition bill continue to take a toll on the property market. The new measures, which saw the mortgage cap for homes valued at HK$8 million raised from 60 per cent to 90 per cent, have been seen as an attempt to prop up the sluggish market. There are also concerns that buyers could suffer if the value of their properties drop in a highly unstable market, leaving them with negative equity. But this was dismissed by Chief Executive Carrie Lam Cheng Yuet-ngor. She stressed that she just wanted to help first-time homebuyers.

The immediate rebound in the market reported by a key property agency – a threefold jump in sales to a six-month high – underlines the market volatility. Even though Lam’s measures appear to be well intentioned, the market has become so distorted that any moves by the government could trigger a strong reaction. On one hand, home prices should not be out of the reach of those with genuine needs. On the other hand, a sudden crash would spell trouble for homeowners. Lam needs to take care of the interests of both the haves and the have-nots.

There is never a perfect time for government intervention. But it can be argued that the current situation offers the latitude to relax previously introduced cooling measures. Boosting land supply in the short and longer term remains the key to affordable housing. The Lam administration has rightly worked towards that goal, only for its plans to be derailed by the months of anti-government protests that we have seen. It is imperative for Lam to end the political crisis as early as possible and renew the momentum in tackling the challenges on the housing front.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Cristiano Ronaldo Makes Surprise Stop at New Hong Kong Museum
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
High-Stakes Trump-Putin Summit on Ukraine Underway in Alaska
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Nine people have been hospitalized and dozens of salmonella cases have been reported after an outbreak of infections linked to certain brands of pistachios and pistachio-containing products, according to the Public Health Agency of Canada
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
Tariffs, AI, and the Shifting U.S. Macro Landscape: Navigating a New Economic Regime
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
OpenAI’s Bold Bet: Teaching AI to Think, Not Just Chat
BP’s Largest Oil and Gas Find in 25 Years Uncovered Offshore Brazil
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Russia Formally Recognizes Taliban Government in Afghanistan
×