Hong Kong's economic fightback has had mixed success in different areas, the finance minister warned, despite improvements in the property and stock markets after cooling measures were abolished.
Finance Secretary Paul Chan Mopo said on Sunday that industries such as retail and food service were still struggling with changing spending habits of city residents and tourists.
“Industries such as retail and catering continue to struggle to adapt to the challenges posed by changing consumption patterns of residents and visitors,” he said in his weekly blog.
“In the medium term, we need to add momentum to the economy to create room for bigger and faster growth. That is the basis on which confidence will be built.”
Zhang said the benchmark Hang Seng Index has risen more than 3,300 points in the past four weeks, recovering more than 30% from the lows hit at the beginning of the year.
“Trade has increased significantly,” he added. “Last week, the daily trading volume exceeded HK$200 billion.”
Mr Chan highlighted that real estate prices reversed 10 consecutive months of decline, with transactions increasing to more than 8,500 last month.
“Overall, Hong Kong's macroeconomic situation is improving and its fiscal situation is stable,” he said.
The government reported last month that 5,013 apartment sales were registered in March.
Chan attributed the increased economic momentum to the lifting of real estate market cooling measures that have been in place for about a decade.
Special Stamp Duty, Buyer's Stamp Duty and New Homes Stamp Duty were introduced in the February Budget following nine months of weak house prices and increasing pressure from property developers and estate agents for help to stimulate the market. Abolished.
Chan said at the time that the measure was no longer necessary due to economic and market conditions.
Real estate agency Colliers announced last month that new apartment sales have jumped 308.4% month-on-month since tariffs were lifted.
During the same period, the number of new and used properties increased by 67.2% to 3,971.
Hannah John, head of valuation and advisory services at Colliers Hong Kong, said last month that developers were adopting prices “close to or below market value”.
She explained that it has caused increased activity in the market by real estate investors and individual home buyers.
Colliers also said it expects sales volumes to increase 43% in 2024 compared to the previous year.
Mr. Chan added that to address the uneven economic recovery, the government will focus on creating a more favorable market environment and improving consumer confidence.
He said the government would announce details of further large-scale events in the second half of this year.
“These mega-events will add vitality and consumption momentum to the market, providing more attractive choices and consumption options for residents and tourists,” he said.
Key events already scheduled for next month include the S2O Hong Kong Songkran Music Festival from June 8th to 9th, the FIVB Volleyball Women's Nations League from June 11th to 16th, and the FIVB Volleyball Women's Nations League from June 15th to 16th. There is also the International Dragon Boat Regatta.
