No longer is the risk, the trade war between the US and China has actually erupted when consecutive American pressure up import tariffs for Chinese goods. List of taxes that focus on the products being put on the plan “Made in China 2025 “, including products related to information technology and robots.
In a new report was released, Jones Lang Lasalle (JLL) said that if the trade war between the United States and China continue to escalate and stock markets continue to slide, the expensive housing prices in Hong Kong will lose at least 15% in the year 2019.
This number can be increased up to 25% if the Hong Kong Government not to evaluate and adjust the measures to cool down the property market, Joseph Tsang – General Manager Hong Kong JLL.
The price of housing in Hong Kong has increased 3 times since the global financial crisis in 2008, there were 63% higher than the peak of the market in 1997. However, the growing unrest around the city’s economic prospects was expressed through the 1.4% rate in the last 2 months.
At present, the people of Hong Kong to buy a second apartment is charged 15% of the 15% fee and a stamped seal specifically applies to the unit in sold within 3 years.
The Hong Kong Government has been adopting measures such as reducing the rate of guarantee (LTV) and impose higher tax rates in an effort to reduce heat in housing markets. These policies have made real estate trading volume dropped to low levels in history, but still not enough to pull back prices and could help the city’s housing market “safe landing“.
“The failure to adjust existing measures will not only seriously affect the price that also can cause serious consequences for the economy. We recommend that the Government of Hong Kong to remove the special stamp policy and consider the application of dual seal policy and guarantee, Tsang said.