Hong Kong » Market Report

The Government of Hong Kong is aware of the importance of the property sector to the economy and the community. Its policy is to allow the private housing market to operate as freely as possible. The Government believes that the amount of private housing production should be a matter for the market to decide. 

The best way to stabilise property prices is to maintain a free and stable environment for the market to operate while reducing government intervention.

Since 1978, over 422,000 flats have been sold to appropriate households at discounted prices under the Government's various subsidised home ownership schemes. In November 2002, the Government decided to stop providing subsidised sale flats and to help low-income families become home owners by the means of loans.

The property market in 2006 is expected to be unstable because of the effect created by probable changes in the expectations on the direction that interest rates can take.