Real Estate News, Reviews and Investment
News: Hong Kong measures to boost floor space.
The announcement by the chief executive of Hong Kong was made against a backdrop of high floor-space sales and demand that was outstripping supply.
The announcement was received with enthusiasm by private developers as well as a note of caution from Thomas Lam, director of research for Knight Frank Greater China.
The business environment at the time of the announcement
Like all the other real estate markets in Asia, Hong Kong also applied restraining measures during the period of escalating real-estate prices due to contracting economic conditions. With improving conditions, such measures were no longer needed and jump-starting the local economy seemed the correct path to follow.
Two prevailing economic conditions
On the eve of the announcement about direct government involvement in increasing the supply of private and public housing, 2 economic conditions were prevalent:
These conditions were conducive in setting the tone for increasing floor space.
Reactions to increasing supply of floor space
There were mixed feelings of uncertainty and confidence. In responding to the announcement, Mr. Lam pointed out that:
Regardless of what impact the statement may have had on business sentiments, there is an underlying confidence that Hong Kong will again revert back to its former vibrant real estate status it enjoyed in the past.