(To watch the full press conference with sign language interpretation, click here.)

Financial Secretary Paul Chan said today that the decision to remove all demand-side management measures in relation to residential properties was made after taking into account the current market situation, future supply, and the wider economic picture.

Mr Chan announced in his Budget that no Special Stamp Duty, Buyer’s Stamp Duty or New Residential Stamp Duty needs to be paid on residential property transactions starting from today.

Elaborating on the measures outlined in his Budget at a press conference this afternoon, Mr Chan explained that the demand-side management measures are no longer necessary given that current supply and demand are more balanced.

He noted that the potential supply of first hand units for the next three to four years will be around 109,000 units, while there are currently about 20,000 unsold units in completed projects.

“The market conditions have been very different now compared to 2010 and thereafter when these measures were introduced at different stages.

“Taking into consideration the current market situation, the future supply, and the economic situation, we think now is the appropriate moment to remove all these demand-side measures and let the market adjust itself.”

He added that he expected the transaction volume may go up after the lifting of the measures.

“The volume would likely be going up, but at the end of the day I think that whether to buy a residential property is a very personal decision depending on a number of factors specific to the individual buyers, including their own needs, their employment situation, their expectation of the economy, their assessment of the future property market, etc.”