Take a chill pill: New property cooling measures are unlikely to be rolled out

Here's why we should all relax.

Compared to 12 months ago, when Hong Kong’s housing market was still reeling from the introduction of new presale rules and home prices had only risen an anaemic 2.3% in 2013, the current context is very different.

According to a research note from Barclays, in 2014, home prices had risen by 11.2% and the value of overall private housing sales had risen markedly by 45% to HK$416bn (primary up 93% to HK$178bn, secondary up 23% to HK$238bn).

With the US expected to raise interest rates sometime in 2015 and the likely anti-cyclical effect on the Hong Kong housing market, Barclays has noted that it does not expect the Hong Kong Government to release any new property cooling measures.

Here's more from Barclays:

That said, home prices have risen 12% since the Government fine-tuned the Double Stamp Duty on 17 May 2014.

We believe the Government’s tone on housing is likely to be more hawkish, perhaps with some reference to “signs of overheating” again.