Budget Focuses On Reviving Housing Market

Hong Kong's annual budget presentation is underway, with much of the market focus on the easing of property curbs.

• Finance Secretary Paul Chan stated that with immediate effect, measures to curb housing demand would be cancelled (BBG). This includes stamp duty, which went further than some in the market expected. This applies across local residents and offshore buyers as well.
• Special stamp duty, buyers' stamp duty and new residential stamp duty will no longer need to be paid for residential property transactions (per BBG).
• We will also hear from the HKMA later today on property lending adjustments.
• All of these steps are designed to aid the ailing Hong Kong housing market.
• There has been an equity market response. The HSI pared losses of as much as 1%, to now back close to flat. The Hang Seng properties index is now up around 1.8%.
• Other parts of the budget are focused on improving tourism and hosting events, while also focusing on foreign investment inflows.
• In terms of the economic outlook. Growth is expected at 2.5-3.5% for 2024, against a 3.2% rise last year. For 2025-2028 economic growth is expected to average 3.2%.