Li Jia Chao: Hong Kong property market "cooling measures" aim to increase market liquidity, property prices are still determined by the market.

According to the Zhongtong Finance APP, Hong Kong Chief Executive Carrie Lam recently announced her second policy address during her tenure, declaring a "cooling down" of the Hong Kong property market. In an interview with the media, she stated that the "cooling down" measures were implemented due to the different market conditions compared to when the previous measures were introduced. She emphasized that the purpose of the "cooling down" measures is to promote market liquidity, while property prices will still be determined by the market. As for whether the measures will be completely lifted in the future, Carrie Lam stated that she will continue to monitor market developments.

Carrie Lam stated that the highly speculative situation targeted in the past no longer exists, and property prices have not experienced a rapid increase. The supply of housing has also increased. The current high interest rate environment is the opposite of the global economic conditions at the time. She believes that it is an appropriate stage for adjustment.

She pointed out that the purpose of the "cooling down" measures is to promote liquidity, not to determine property price levels. She emphasized that prices should be determined by the market. She hopes to make it clear to the public the policy direction of the Hong Kong SAR government. In addition to the "cooling down" measures, the stamp duty on stocks has also been reduced to facilitate investment decisions.

When asked whether there will be restrictions on the sale of first-hand properties to prevent speculation, Carrie Lam stated that Hong Kong is a free economy that respects property rights. If there are restrictions on sales, the impact on Hong Kong's overall competitiveness needs to be considered. She believes that Hong Kong needs to compete globally and ensure the attraction of foreign investment, so relevant issues must be taken into account.

As for solving the problem of subdivided units, Carrie Lam emphasized the need to study the root causes of their existence and solve the problem from its source. In addition to the accumulated demand due to limited land and housing supply in the past, subdivided units have now become an industry. Therefore, it is necessary to ensure that the owners providing subdivided units do not exploit tenants and to establish an industry-oriented approach.