Prices for residential property in Hong Kong have more than doubled since hitting a recession-era low in December 2008, according to brokerage CLSA.
The sharp increase has sparked fears of an asset bubble. In December, the International Monetary Fund warned of the possibility of a “sharp price correction” in the market.
The government tried to cool the market in October, but prices have continued to edge higher. The government action may also have unnerved some investors, who pushed into less regulated alternative property investments like parking spaces and roof decks.
Now Hong Kong is clamping down on some of the quirkier trends that have popped up in the city’s distorted property market, announcing a series of measures that include higher taxes and tighter mortgage requirements on specialized transactions.
The crackdown includes tighter regulations on the sale of parking spots, which can demand hundreds of thousands of dollars each if the location is right.
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