Hong Kong government attempt to stop property prices soaring further
The first long-term policy for 14 years is currently being formulated in Hong Kong in attempt to cool soaring property prices.
Hong Kong has some of the highest prices for residential and retail property in the world. Locals struggle to cover the rent and mortgages and many are living in poverty as a result. A steering committee, appointed by the government, has been created in attempt to tackle these issues and formulate a long-term housing plan for Hong Kong.
The steering committee met for the first time on Monday and plan to review the public’s demands for better housing. The main focus of the committee is easing pressure on the elderly and first-time property buyers.
Housing prices have soared in Hong Kong due to a low-interest rate and wealthy investors pushing housing prices up in the area, making them some of the highest prices for property found in the world. This has put property ownership out reach for many prompting public anger over the housing inequality.
Secretary for Housing, Anthony Cheung, said that the committee is not responsible for the land, but are there to forecast demand and make suggestions to ease the situation. It is hoped that these suggestions will impact on the supply of new property in Hong Kong.
The committee is expected to draft a report for the middle of next year. The government will use this report to gain public feedback on the proposals and hopefully ease the property crisis for residents in Hong Kong.