 |
HONG KONG, Feb. 26, 2013 /PRNewswire/ -- Royal Institution of Chartered Surveyors (RICS) welcomes the latest cooling measures on local property market. RICS believes the new measures are able to help the property market develop in a healthy manner and are a clear sign that the administration is determined to regulate the market.
In terms of reducing speculative activities and cooling the overheated market, RICS believes that the doubling of stamp duty of all properties and increase of stamp duty rate to 1.5% for properties under HK$2 million are effective measures. Since first-time buyers and home owners trading up properties will be granted exemption, end-user homebuyers will benefit. The measures mainly target individuals who own more than one property. RICS is of the view that this is able to curb speculative activities and cool the red hot property market, which as a result helps address the unreasonable growth of home prices. It is expected that the measures will enable the property market to develop in a healthy manner.
Nevertheless, the administration should be mindful that factors such as the low yield environment across the global markets and excess liquidity in the market, coupled with potential asset appreciation, encourage investment in residential property market. The newly introduced demand-side measures should only be implemented in the near term. In the long term, increase in residential flat supply shall be the prime factor to slow down growth in home prices.
Meanwhile, the new stamp duty rates will also apply to non-residential properties, whereas the stamp duty will be charged on a sale and purchase agreement. Hong Kong Monetary Authority (HKMA) also lowers the applicable loan-to-value ratio limits for non-residential property mortgage loans. RICS expects this measure will stabilise selling prices of non-residential properties as the transaction costs of these properties increase. However, at the same time, RICS points out that the government should offer more sites for non-residential developments, so that enough office space can cater for the market's needs to ease the upward pressure of non-residential property prices and rents.
At the same time, RICS agrees that the new measures announced by the government and HKMA are clear signs that the government is willing to stabilise the residential property market by delaying the demand and synchronising with the supply. The market will see the peak of home supply in 2014 and 2015. RICS points out that the new measures will discourage turnover of both residential and non-residential properties and therefore lower the transaction volume in the market. Consequently property prices are still likely to surge. In addition to boosting supply, RICS calls for corresponding policy measures, such as streamlining approval procedures to shorten development period, to meet with market demand.
RICS Hong Kong External Affairs and Public Concerns Committee Chairman David Tse says, "RICS welcomes the recent announcement of the cooling measures, in particular, the exemption for first-time buyers and change home buyers, as these measures will help to stabilise the property market by deterring the speculative or investment activities, while at the same time protecting end-user home buyers from paying extra stamp duties. Nevertheless, RICS recommends government not to forget the supply-side measures, e.g. by increasing the short, medium-term supply of both land and buildings, while drawing up a long-term land bank or strategy. The government should also review the effectiveness and need of these cooling measures from time to time to keep abreast of the latest market developments, and to safeguard Hong Kong's status as a free economy."
About RICS & RICS Asia
RICS is the world's leading qualification when it comes to professional standards in land, property and construction. In a world where more and more people, governments, banks and commercial organisations demand greater certainty of professional standards and ethics, attaining RICS status is the recognised mark of property professionalism.
Over 100,000 property professionals working in the major established and emerging economies of the world have already recognised the importance of securing RICS status by becoming members.
RICS is an independent professional body that since 1868, has been committed to setting and upholding the highest standards of excellence and integrity - providing impartial, authoritative advice on key issues affecting businesses and society. RICS is a regulator of both its individual members and firms enabling it to maintain the highest standards and providing the basis for unparalleled client confidence in the sector.
The RICS Asia supports a network of over 11,000 individual professionals across the Asia Pacific region with an objective to help develop the property and construction markets in these countries, by introducing professional standards, best practice and international experience. It promotes RICS and its members as the natural advisors on all property matters. It also ensures that services and career development opportunities are provided to members.
The RICS Asia region covers national associations and local groups locating in Brunei, Malaysia, Singapore, Thailand, The People's Republic of China and the SAR Hong Kong. It also has members working across the region such as Bangladesh, Bhutan, Burma/Myanmar, Cambodia, Indonesia, Japan, Kiribati, Laos PDR, Macao, Mongolia, Nepal, North Korea, South Korea, Taiwan region, The Maldives, The Philippines, Timor East and Vietnam. For more information, please visit: www.ricsasia.org
Media enquiry, please contact:
RICS Asia Public Relations Representative
Mr. Andy Hung / Mr. Timothy Wong
T: +852-2114-0270
F: +852-3163-2340
M: +852-9254-9250 / +852-6485-3225
E: andy@creativegp.com / timothy@creativegp.com
