Sunday, 1 March 2015

Quote of the Day: John Tsang

People have to save up even more to be able to buy a shoebox in the sky
Financial Secretary John Tsang Chun-wah really thinks he's a middle-class kind of guy. He makes over HK$300,000 ($38,680) a month and believes middle-class people like to drink coffee and watch French movies.

And now with property prices rising even higher, his advice is, "If it is not affordable, then don't buy a property".

He said this after the Hong Kong Monetary Authority chief executive Norman Chan Tak-lam announced new mortgage-tightening measures, which means buyers will have to put down an even higher down payment for flats that are HK$7 million and less.

This has a knock-on effect as people who may have had enough for a down payment, will have to save even more now, and are stuck in rental purgatory longer. As a result, demand for rental properties will increase, and thus rental prices too.

It's an ugly situation that hardly solves the problem for home buyers, particularly those trying to purchase their first home.

Tsang wasted an opportunity in his budget address earlier this week to help first-time buyers, particularly young people, with a loan or subsidy to help them with the down payment.

But instead he says if it's too expensive, then don't buy.

He's just adding fuel to the fire to get people annoyed again to protest. So much for watching French movies and drinking coffee because the struggling middle class really can't afford them!


  1. As at least someone wrote/read in reaction, John Tsang must be an Umbrella Movement/Revolution supporter - because he's giving people more reason to protest!

    Why oh why didn't he slap a tax on those people who buy apartments (and houses) and then leave them empty?? Also, if he suggests people rent instead of buy, surely he should help people who rent pay their rents -- or ensure that rents in Hong Kong don't skyrocket along with the actual prices of property?!

    1. Hi YTSL -- Yes he may be secretly supporting the Umbrella Movement! We shall see!

      The government has really created a vicious cycle that's getting worse and worse. Not only are flats unaffordable they are tinier and tinier! Only the uber rich can play the property game...