Financial Secretary John Tsang Chun-wah said he has noticed huge price increases in commercial properties and the authorities may intervene in this sector if economic stability is threatened. Tsang announced measures to temper the red- hot housing market on October 26, and these have already helped to cool the sector.
In his weekly blog, Tsang said commercial property prices made up a smaller part of the market than residential units, involving experienced investors and larger investments.
Meanwhile, car parking slots are the latest craze and latest hot-spot in the property sector, drawing in lots of money.
Tseung Kwan O saw seven car spaces change hands in just two days, according to Centaline.
Each parking slot went for around HK$900,000 to HK$1 million.
Tsang stressed the authorities have not changed their stance on maintaining a free market. "We are not unwelcoming to foreigners buying homes. We just hope to relieve the loss of balance in demand and supply."
Tsang said once the new measures are digested, unit prices will moderate and transaction volumes will rise.
Also, with greater capital inflows, the Hong Kong Monetary Authority launched its biggest single intervention this year on Friday. It injected HK$5.04 billion into the banking system to keep the local currency within the peg. VICTOR CHEUNG
