Heard the one about the parking space sold for $620,000? In Hong Kong, property — even for cars — is an obsession that affects everyone from the richest tycoons to those struggling to get on the ladder in the world’s least affordable market. So a surprise increase in stamp duty was always going to cause waves, and developers’ shares duly tumbled on Monday.
But the chances that the measures will truly burst one of the world’s most stubborn real estate bubbles are slim while US rates remain low and the renminbi is weakening.
There is no doubt that Hong Kong has a problem. Prices are 19 times median incomes, according to one global survey that ranked Sydney second least affordable at 12 times. Prices in Hong Kong bottomed in March, confounding predictions of an extended slide through the year. Since March they have risen 13 per cent.