Hong Kong Authorities Increase Regulation and Taxes to Curb Housing Bubble

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.

via CNN

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza