To: Pogeu Mahone who wrote (162243 ) 9/5/2020 10:12:38 AM From: TobagoJack Respond to Re <<buy the place>>bloomberg.com Andy Mukherjee Read more opinion Follow @andymukherjee70 on Twitter real estate investment market is as large as its gross domestic product; Singapore’s half. In most other places, property as a professionally managed asset class is a much smaller ratio of output. No wonder that the two island economies will be in the crosshairs of global capital again, now that the U.S. Federal Reserve is signalling a higher tolerance for inflation before withdrawing monetary stimulus.quantitative easing . Yet there are two good reasons to expect a divergence in their fortunes this time around. The coronavirus pandemic’s impact on landlord-tenant relations and the imposition of a Beijing-sponsored national security law in Hong Kong may push the markets to drift apart. fair tenancy law . Hong Kong’s laissez-faire DNA makes it an unlikely follower of a Singaporean-style interventionist approach. It’s happy letting landlords and tenants strike their own compromises — or take their disputes to court . worst electoral performance since 1965 , the government is doubling down on policies that make it harder for firms to hire foreigners . That’s not great news for the private residential market, since the city’s aging local population, already well-served by public housing, can’t do much to stoke demand. Sept. 6 Legislative Council elections by one year puts pro-democracy candidates’ demand for more popular representation on ice. The narrow interests of the powerful property builders will continue to dominate, and they’ll stay closely tuned to Beijing’s concerns. Most of the large local players told the South China Morning Post that they’d take a pass on six blocks of mansions overlooking Deep Water Bay that the U.S. government put up for sale three days after the security law was proposed.selling land parcels for a Beijing-sponsored Greater Bay Area, which will connect Hong Kong, Macau and southern China into a seamless economic hub. Most excitement about the property market is now from mainland buyers, who have accounted for 98% of all inbound investments this year.leverage limit for real estate investment trusts, Hong Kong has decided to let distressed assets move to new hands and relaxed a loan-to-value ceiling for buyers of shops and offices. First-time homebuyers were given the flexibility to borrow up to 90% of an HK$8 million ($1 million) unit last year, a move that may encourage excessive risk-taking once the pandemic shock fades. HK$10,000 handouts for adult permanent residents. While that may give the impression that Singapore and Hong Kong are pursuing similar welfarist policies, the reality is that they’re on different paths. Singapore will be wary of losing its balance. Hong Kong may not mind dancing to the music of cheap money, knowing that Beijing won’t let it fall.amukherjee@bloomberg.net pmcdowell10@bloomberg.net LEARN MORE
