Homes-for-Hongkongers plan will extend to their resale

Homes-for-Hongkongers plan will extend to their resale

“Policy to help local homebuyers by barring non-residents from buying some flats will also extend to their resale, housing minister says

Tuesday, 04 September, 2012, 12:00am

Joyce Ng

A much-awaited scheme to restrict sales of some new homes to Hong Kong buyers will be extended to the resale of those flats, the housing minister said yesterday.

In an interview with the South China Morning Post, Secretary for Transport and Housing Professor Anthony Cheung Bing-leung said the sales ban would be extended to safeguard the policy dubbed "Hong Kong property for Hong Kong residents". Otherwise buyers could quickly defeat its purpose by immediately reselling the flats to mainlanders.

Cheung was elaborating on Chief Executive Leung Chun-ying's announcement last week of 10 measures to cool the property market. Leung said the sales ban would be launched after legal drafting was completed and the new restrictions were added to land leases of new sites for sale to private developers.

"The purpose is to cater to Hong Kong residents' aspirations for home ownership," Cheung said….”

At the rate property prices are spiralling out of control with a shrinking world and money being printed like toilet papers, the whole paradigm of home ownership for citizens would need to be seriously looked at, especially in little countries or cities like Hongkong and Sinkieland. They just have not enough for sale, and there are just too much money looking for a good buy. And where else to put money into properties than in land scarce little cities? The only risk is for the little cities to sink due to the weight and overbuilding. Other than this, the prices of properties can only go one way, up and up. And anyone who sold will only see the prices going higher and higher, like the Tower of Babel.

Given the new set of parameters, what should the govt of a people do to protect the interest of its citizens? Selling out is a very attractive option and everyone hanging to a piece of property would only wait for his turn to cash out to the next richer buyer. It is a nice monopoly game to play and to exit very rich as long as one does not bother about remaining in an ever pricier little city.

The Hongkie govt has realised that the property game cannot be played under the same old rules or Hongkong will be sold to the highest buyers in no time. The curbs will come down real hard, and the game will be changed. Properties will no longer be traded freely, or some at least, and be determined by market forces alone. Govt intervention is a must to keep the ship from hitting an iceberg of Titanic proportion.

Maybe the Hongkie govt are just plain silly. It would be better to sell everything on a willing buyer willing seller basis, and everyone will be smiling to the banks. Why is Hongkong losing touch with its free spirit and free enterprise philosophy?