Editorial | For Hong Kong’s fiscal health, commercial land sales should resume
With so many development projects in the pipeline, the government cannot wait until the property market has fully recovered
Data from the Rating and Valuation Department shows that lived-in home prices rose 1.3 per cent in September, logging the biggest gains so far this year and reaching the highest in more than a year. The increase marks the sixth consecutive month in which the official index has either remained stable or edged higher. Similarly, the Land Registry recorded 78 first-hand residential sales priced between HK$30 million (US$3.86 million) and HK$49.99 million in the first 20 days of October, a 10-month high in transactions involving upmarket deals.
Considering residential prices had fallen 28.4 per cent as of March this year, from their peak in September 2021, the rebound came as a much-needed boost in confidence. The upturn was mainly attributed to a favourable view of easing in interest rates and a resurgence in the recent performance of the local stock market. But whether the optimism is spilling over to the commercial market and the wider economy remains to be seen.
That may be true, but the government cannot sit back until the property market has fully recovered. With so many massive development projects in the pipeline, the government must stay ahead of the market and adjust its policies so as to facilitate timely business decisions. This is not only in the interest of the market but also for the sake of land revenues and public fiscal health.