Three top officials sell homes amid a slump in prices

Three top officials in the administration have sold properties amid a roughly 16 percent drop in prices over the past 20 months.

In this year's declarations of interests by officials and Executive Council members made public yesterday, Secretary for Health Lo Chung-mau said he sold two properties.

Lo declared last year that he owned four flats - two in Hong Kong Island South, one in Yau Tsim Mong, and a vacant flat in the United Kingdom.

But in this year's declarations Lo said he had two flats, indicating he sold one in Hong Kong Island South - a property he and his wife co-owned and which was occupied by his family - and the vacant flat in the UK that was also co-owned by him and his wife.

Secretary for Security Chris Tang Ping-keung and Secretary for Home and Youth Affairs Alice Mak Mei-kuen sold their only properties in the past year.

Tang declared last year he owned a flat in Southern District that was occupied by family members. But this year Tang said he does not own any property.

Mak's declaration showed she does not own any property, that she had sold a residence in Kowloon City that had been leased out.

Tang and Mak will join Secretary for Culture, Sports and Tourism Kevin Yeung Yun-hung as the only three among the 21 principal officials not owning a property.

Among the principal officials Secretary for Financial Services and the Treasury Christopher Hui Ching-yu remained the official with the most properties. He and his family own seven - three residential flats in Wan Chai, one in Central and Western District, one in Hangzhou and one each in Australia and Singapore.

Following on are Secretary for Housing Winnie Ho Wing-yin and Secretary for IT and Industry Sun Dong. Both own four properties.

Chief Secretary for Administration Eric Chan Kwok-ki and Secretary for Justice Paul Lam Ting-kwok each own three properties.

Economist Andy Kwan Cheuk-chiu, director of the ACE Centre for Business and Economic Research, said officials selling properties does not necessarily indicate a lack of confidence in Hong Kong's market.

Kwan said officials often own more properties, and they may sell for liquidity or after a favorable offer. "Government officials selling properties are like citizens engaging in buying and selling for the purpose of making money," he added. But if they sell a property that was for self-occupation "it could indicate a problem in the property market."

Kwan said property market sentiment is relatively subdued as the monthly transaction volume in the past two months remained low with less than 3,000 transactions a month.

And while officials sold properties, some Executive Council members purchased residential flats in the past year.

Executive Council convener and legislator Regina Ip Lau Suk-yee purchased a residential property with a parking space in Central and Western District - under the name of Magic Fiddle Ltd - for self-occupation.

Executive councillor and lawmaker Gary Chan Hak-kan bought a residential property in Shenzhen for leasing.

And former secretary for food and health Ko Wing-man had the most changes in his declaration as his wife purchased three flats in the past year, including one in Sham Shui Po, one in Kowloon City and another in Zhongshan.

michael.shum@singtaonewscorp.com