Column of the editorial leader of the new wave (Bkopleader)

Real estate is the mother of the cycle and is home-based. The housing system is a heavy instrument in a country. What policies and systems are necessary, what are the results of the real estate market, and the housing system is a genetic password deeply embedded in a country’s real estate market.

The Hong Kong model is home to the inland real estate market. In recent years, the rapid development of the inland real estate market has been accompanied by similar high-cost housing difficulties in some cities. The retrospective study of Hong Kong’s housing system is a positive reflection on the internal housing system and addressing the challenges of high prices.

Hong Kong’s economy has developed rapidly since the beginning, with success in “Asia’s four-wagons”, with a per capita GDP of $577 million in 2017, one of the richest regions of the world. The economy is highly prosperous, and housing is facing difficulties. Hong Kong’s citizens live in poor conditions, with 16 square metres per capita; the price of housing continues to rise for many years, and there is considerable pressure on them to buy housing. In 1986-2017, the average prices of private homes in Port Island, 9on and the new world increased by 20, 20 and 14 times, respectively, with an average annual increase of 10, 10 and 9 per cent, in 2018 with nearly 48 times as much as in the main cities of the world. Because of the high cost of housing, home ownership declined from 54 per cent in 2004 to 49 per cent in 2017.

Despite the large number of public houses built by the Hong Kong Government, in 2016 Hong Kong housing stock was 1.09, with high housing prices and housing difficulties.

What policies and systems are necessary, and what is the results of the real estate market. Hong Kong’s high housing difficulties are directly related to the four pillars of its housing system.

Land systems with inadequate availability. In the aftermath of the opium war, Port Island and the nine-long land were restored to the Crown. Returning to the country in 1997, Hong Kong land ownership was owned by the State, with the right to use continuing the land titling system, allowing free transfer of tenure through auctions, bidding, agreements, and 50 years of new land, except for special land, with long-term inadequate land availability and 10 square metres of residential land per person. This stems from the high priority attached by the authorities to ecological protection, the inability to develop 37 per cent of the peripheral parks in the land, a significant reduction in the land area after 05 years of protests by environmentalists, and a significant reduction in land concessions between 03 and 10 years for the Government to maintain the stability of the building city.

Renegotiation of the tax system for petty trading. A heavy tax is levied on the housing transaction chain, and Hong Kong residents are required to pay a premium tax of less than 4.5 per cent for the purchase of the first home and 15 per cent for the purchase of more than two houses. Non-Hong Kong residents are required to pay 15 per cent of their stamp duty in addition to paying 15 per cent. In addition, if the home is purchased for resale for less than three years, the buyer is required to pay an additional 10 to 20 per cent stamp duty jointly with the seller, all of which are higher for sale or assessment. However, the bond tax is lower, and the tax base is rented, including 5 per cent of the difference and 3 per cent of the land rent, while the taxing industry pays another 15 per cent of the property tax. Because the difference is only 0.2-0.5 per cent of the value of the property, compared to 1 to 2 per cent of the European-American tax.

Highly developed housing finance systems. Hong Kong’s mortgage is flexible and supports many forms of lending. Local residents purchase a minimum of 40 per cent of the first home, but purchase finance to sell houses or apply for mortgage insurance, with an initial payment of up to 5 per cent, a mortgage payment of less than 20 per cent from the real estate and financial companies, and support the mortgage. In addition, Hong Kong also carries out mortgage operations (recovered after repayment of part of the loan), switches (disembarked between banks) and branding (old building mortgages in support of the new building). Hong Kong has a system of associated exchange rates with long-term low interest rates that follow the United States, with three major banknote banks currently standing at a ceiling of 2.35 per cent. Flexibility in mortgages, combined with low interest rates, stimulates residents to leverage houses. Hong Kong accounted for 45 per cent of GDP in 2017, with a higher level of leverage among the population.

Unbalanced public housing system. Rental of public housing is low, but the waiting period is long, with poor conditions. Rental of public housing is between one third and one/7 for private housing, and trips can be arranged by residents who meet asset income constraints. On average, however, round 5.3 is required and the median per capita area is only 13 square metres. The median per capita increase of only 1 square metres between 07 and 17 years. The financing of the sale unit is home-based and, although sold at a discount rate, is high and poorly supplied. The price is approximately 60-70 per cent of private homes, and because of market prices, high prices and low supply of housing. In the period 02-17, the Housing Committee completed only 580 units per year.

From the market structure, Hong Kong has a “two-track” housing supply. The Government-led construction of public housing accounts for nearly half of the population, mainly in the public housing and financial sales units. In 2016, public housing accounted for 29 per cent of Hong Kong’s population, with 16 per cent of the population supporting the sale unit, totalling 45 per cent. In addition, nearly half of the families have opted for rent because of the large number of public houses, which are overvalued. Hong Kong rented households accounted for 49 per cent in 2016.

High housing difficulties are not unique to Hong Kong, and some of the hot spots in the interior are facing similar difficulties, with deep reflection on Hong Kong’s housing system in order to take the lead. In terms of economic relevance, the property industry is relatively high in Hong Kong. Real estate-related industries account for more than 30 per cent of GDP, and have remained at 20 to 25 per cent since 06. In 2016, land concessions accounted for 22 per cent of fiscal revenues, holdings for about 5 per cent and transactional stamp duties for 3 per cent, with a combined contribution of 32 per cent. Land supply is not sufficient to cover high prices. Due to the importance of ecological protection, building stability, the Hong Kong land supply is inadequate and only 5 hectares of residential land are allowed for between 02 and 10 years. In the context of sustained population growth, too few land supplies, combined with a loose financial environment, have contributed to a sustained rise in Hong Kong’s housing prices. The lack of support in the secondary sector has led to the gradual consolidation of the housing sector. Ideally, Hong Kong could form a gradient supply system for “public house-home-private home”. However, housing conditions are difficult to improve owing to a significant reduction in the provision of housing, a continuing rise in the price of housing, difficulties in obtaining housing for low- and middle-income sectors. Recent developments

Column of the editorial leader of the new wave (Bkopleader)

Real estate is the mother of the cycle and is home-based. The housing system is a heavy instrument in a country. What policies and systems are necessary, what are the results of the real estate market, and the housing system is a genetic password deeply embedded in a country’s real estate market.

The Hong Kong model is home to the inland real estate market. In recent years, the rapid development of the inland real estate market has been accompanied by similar high-cost housing difficulties in some cities. The retrospective study of Hong Kong’s housing system is a positive reflection on the internal housing system and addressing the challenges of high prices.

Hong Kong’s economy has developed rapidly since the beginning, with success in “Asia’s four-wagons”, with a per capita GDP of $577 million in 2017, one of the richest regions of the world. The economy is highly prosperous, and housing is facing difficulties. Hong Kong’s citizens live in poor conditions, with 16 square metres per capita; the price of housing continues to rise for many years, and there is considerable pressure on them to buy housing. In 1986-2017, the average prices of private homes in Port Island, 9on and the new world increased by 20, 20 and 14 times, respectively, with an average annual increase of 10, 10 and 9 per cent, in 2018 with nearly 48 times as much as in the main cities of the world. Because of the high cost of housing, home ownership declined from 54 per cent in 2004 to 49 per cent in 2017.

Despite the large number of public houses built by the Hong Kong Government, in 2016 Hong Kong housing stock was 1.09, with high housing prices and housing difficulties.

What policies and systems are necessary, and what is the results of the real estate market. Hong Kong’s high housing difficulties are directly related to the four pillars of its housing system.

Land systems with inadequate availability. In the aftermath of the opium war, Port Island and the nine-long land were restored to the Crown. Returning to the country in 1997, Hong Kong land ownership was owned by the State, with the right to use continuing the land titling system, allowing free transfer of tenure through auctions, bidding, agreements, and 50 years of new land, except for special land, with long-term inadequate land availability and 10 square metres of residential land per person. This stems from the high priority attached by the authorities to ecological protection, the inability to develop 37 per cent of the peripheral parks in the land, a significant reduction in the land area after 05 years of protests by environmentalists, and a significant reduction in land concessions between 03 and 10 years for the Government to maintain the stability of the building city.

Renegotiation of the tax system for petty trading. A heavy tax is levied on the housing transaction chain, and Hong Kong residents are required to pay a premium tax of less than 4.5 per cent for the purchase of the first home and 15 per cent for the purchase of more than two houses. Non-Hong Kong residents are required to pay 15 per cent of their stamp duty in addition to paying 15 per cent. In addition, if the home is purchased for resale for less than three years, the buyer is required to pay an additional 10 to 20 per cent stamp duty jointly with the seller, all of which are higher for sale or assessment. However, the bond tax is lower, and the tax base is rented, including 5 per cent of the difference and 3 per cent of the land rent, while the taxing industry pays another 15 per cent of the property tax. Because the difference is only 0.2-0.5 per cent of the value of the property, compared to 1 to 2 per cent of the European-American tax.

Highly developed housing finance systems. Hong Kong’s mortgage is flexible and supports many forms of lending. Local residents purchase a minimum of 40 per cent of the first home, but purchase finance to sell houses or apply for mortgage insurance, with an initial payment of up to 5 per cent, a mortgage payment of less than 20 per cent from the real estate and financial companies, and support the mortgage. In addition, Hong Kong also carries out mortgage operations (recovered after repayment of part of the loan), switches (disembarked between banks) and branding (old building mortgages in support of the new building). Hong Kong has a system of associated exchange rates with long-term low interest rates that follow the United States, with three major banknote banks currently standing at a ceiling of 2.35 per cent. Flexibility in mortgages, combined with low interest rates, stimulates residents to leverage houses. Hong Kong accounted for 45 per cent of GDP in 2017, with a higher level of leverage among the population.

Unbalanced public housing system. Rental of public housing is low, but the waiting period is long, with poor conditions. Rental of public housing is between one third and one/7 for private housing, and trips can be arranged by residents who meet asset income constraints. On average, however, round 5.3 is required and the median per capita area is only 13 square metres. The median per capita increase of only 1 square metres between 07 and 17 years. The financing of the sale unit is home-based and, although sold at a discount rate, is high and poorly supplied. The price is approximately 60-70 per cent of private homes, and because of market prices, high prices and low supply of housing. In the period 02-17, the Housing Committee completed only 580 units per year.

From the market structure, Hong Kong has a “two-track” housing supply. The Government-led construction of public housing accounts for nearly half of the population, mainly in the public housing and financial sales units. In 2016, public housing accounted for 29 per cent of Hong Kong’s population, with 16 per cent of the population supporting the sale unit, totalling 45 per cent. In addition, nearly half of the families have opted for rent because of the large number of public houses, which are overvalued. Hong Kong rented households accounted for 49 per cent in 2016.

High housing difficulties are not unique to Hong Kong, and some of the hot spots in the interior are facing similar difficulties, with deep reflection on Hong Kong’s housing system in order to take the lead. In terms of economic relevance, the property industry is relatively high in Hong Kong. Real estate-related industries account for more than 30 per cent of GDP, and have remained at 20 to 25 per cent since 06. In 2016, land concessions accounted for 22 per cent of fiscal revenues, holdings for about 5 per cent and transactional stamp duties for 3 per cent, with a combined contribution of 32 per cent. Land supply is not sufficient to cover high prices. Due to the importance of ecological protection, building stability, the Hong Kong land supply is inadequate and only 5 hectares of residential land are allowed for between 02 and 10 years. In the context of sustained population growth, too few land supplies, combined with a loose financial environment, have contributed to a sustained rise in Hong Kong’s housing prices. The lack of support in the secondary sector has led to the gradual consolidation of the housing sector. Ideally, Hong Kong could form a gradient supply system for “public house-home-private home”. However, housing conditions are difficult to improve owing to a significant reduction in the provision of housing, a continuing rise in the price of housing, difficulties in obtaining housing for low- and middle-income sectors. Recent developments