Michael Shum
Property prices could still drop 5 to 10 percent even if all market cooling measures are lifted when the budget is delivered tomorrow, investment bank UBS predicts.
This comes as reactions were mixed to the government’s reported plan for monthly fireworks and drone shows to lift Hong Kong out of the doldrums.
UBS said it expects the government to remove all residential-related stamp duties and introduce more measures to attract mainland tourists to Hong Kong in the 2024-25 budget.
”The removal of stamp duties will provide a one-off boost to property developers’ share prices and the real estate market, but the positive market sentiment may not last,” it said.
”Even if all market cooling measures are scrapped, property prices will still drop by 5 to 10 percent compared with last year.”
UBS said the supply of residential flats remains sufficient, expecting around 51,000 first-hand homes to be put up for sale this year.
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