Saudi Press

Saudi Arabia and the world
Sunday, Jun 01, 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The government is under growing pressure to intervene as the protests triggered by the now-withdrawn extradition bill continue to take a toll on the property market.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
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
UAE Offers Free ChatGPT Plus Subscriptions to Citizens
Lebanon Initiates Plan to Disarm Palestinian Factions
Iran and U.S. Make Limited Progress in Nuclear Talks
The Daily Debate: The Fall of the Dollar — Strategic Reset or Economic Self-Destruction?
Trump Administration's Tariff Policies and Dollar Strategy Spark Global Economic Debate
OpenAI Acquires Jony Ive’s Startup for $6.5 Billion to Build a Revolutionary “Third Core Device”
Turkey Weighs Citizens in Public as Erdoğan Launches National Slimming Campaign
Saudi-Spanish Business Forum Commences in Riyadh
Saudi Arabia and Spain Sign MoU to Boost SME Sectors
UK Suspends Trade Talks with Israel Amid Gaza Offensive
Iran and U.S. Set for Fifth Round of Nuclear Talks Amid Rising Tensions
Russia Expands Military Presence Near Finland Amid Rising Tensions
Indian Scholar Arrested in Crackdown Over Pakistan Conflict Commentary
Israel Eases Gaza Blockade Amid Internal Dispute Over Military Strategy
President Biden’s announcement of advanced prostate cancer sparked public sympathy—but behind closed doors, Democrats are in panic
A Chinese company made solar tiles that look way nicer than regular panels!
Indian jet shootdown: the all-robot legion behind China’s PL-15E missiles
The Chinese Dragon: The True Winner in the India-Pakistan Clash
Australia's Venomous Creatures Contribute to Life-Saving Antivenom Programme
The Spanish Were Right: Long Working Hours Harm Brain Function
Did Former FBI Director Call for Violence Against Trump? Instagram Post Sparks Uproar
US and UAE Partner to Develop Massive AI Data Center Complex
Apple's $95 Million Siri Settlement: Eligible Users Have Until July 2 to File Claims
US and UAE Reach Preliminary Agreement on Nvidia AI Chip Imports
President Trump and Elon Musk Welcomed by Emir of Qatar Sheikh Tamim with Cybertruck Convoy
Strong Warning Issued: Do Not Use General Chatbots for Medical, Legal, or Educational Guidance
Saudi Arabia Emerges as Global Tech Magnet with U.S. Backing and Trump’s Visit
This was President's departure from Saudi Arabia. The Crown Prince personally escorted him back to the airport.
NVIDIA and Saudi Arabia Launch Strategic Partnership to Establish AI Centers
Trump Meets Syrian President Ahmad al-Shara in Historic Encounter
Trump takes a blow torch to the neocons and interventionists while speaking to the Saudis
US and Saudi Arabia Sign Landmark Agreements Across Multiple Sectors
Why Saudi Arabia Rolled Out a Purple Carpet for Donald Trump Instead of Red
Elon Musk Joins Trump Meeting in Saudi Arabia
Trump says it would be 'stupid' not to accept gift of Qatari plane
Quantum Computing Threatens Bitcoin Security
Michael Jordan to Serve as Analyst for NBA Games
×