How will the 2018-19 Budget impact the property market?
It has been a week since the government released the 2018-19 Budget. While the Budget has focused on a long-term development direction for Hong Kong, a clear road map or an execution mechanism is still missing. Regarding the property sector, we believe that property prices will continue to rise in 2018, and when it comes to the much talked about housing issues in Hong Kong, the financial secretary failed to provide any solution for the acute housing shortage problem.
Housing isn’t the only property sector being affected by the 2018-19 budget:
- The expansion of the innovation and technology (I&T) industry could be a new driver for the office market, as start-ups and co-working spaces become more prominent in the city.
- Still, would a lack of new warehouse lands hinder Hong Kong’s road to becoming a trading and logistics hub for high-value goods?
- The number of units to be provided by the government land sales target for 2018-19 will hit a five-year low, what can the government do to tackle the supply shortage problem?