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Hong Kong’s property barons set to benefit from affordable housing drive

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  1. #11

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    Lol.

    My comment is not political. I just hate billionaire monopolies. Especially billionaires in HK. They inflate their wealth by monopolizing needs instead of creating added value. Unlike Bill Gates or Elon Musk.

  2. #12

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    Hong Kong's land resources are limited yet essential to people's lives, and this is an industry that should not be left to the free market. This kind of old-fashioned and inflexible market operation is the root of Hong Kong's misfortune planted decades ago.

    When limited resources are often given to a few real estate tycoons, it is not a fully competitive market economy, but an oligopoly.

    Singapore also lacks land resources, but the Singaporean government is much more far-sighted than Hong Kong and knew early on that the real estate industry had to be regulated.


  3. #13

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    Quote Originally Posted by nivek2046:
    the HK government is not go to do anything which may affect the value of the homes owned by millions of middle class families (especially those with outstanding mortgages).

    PLUS, the government will not do anything which may have any negative impact on the banking system.

    CCP's wish to end crony capitalism (before 2047) will take a back seat because of those two issues.

    does anyone know how to end crony capitalism in Hong Kong without affecting middle class families and the banking system?
    Expand the tax base.

  4. #14

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    Quote Originally Posted by East_coast:
    High land prices is a tax policy not a developer policy. Governments set policy.

    Until there is a change in the way tax is collected demonizing the developer is a........

    Popular with some it seems.

    Again. Land ta x is the reason for land scarcity NOT hording by developers.
    Relying on land sales has made the government far too reliant on the real estate sector and made them forgot the cost high land prices has on other industries. But the government has no real incentive to change the present arrangement.

  5. #15

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    Quote Originally Posted by Coolboy:
    Expand the tax base.
    like introducing Capital GAIN Tax for shares and properties?

    they have been debating this AD NAUSEAM, but don't what's holding them back?

  6. #16

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    Quote Originally Posted by nivek2046:
    like introducing Capital GAIN Tax for shares and properties?

    they have been debating this AD NAUSEAM, but don't what's holding them back?
    Hong Kong has always had the advantage of no capital gain tax, especially in the stock market. Once opened, I think the impact is even greater than NSL

  7. #17

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    Quote Originally Posted by binance345:
    Hong Kong has always had the advantage of no capital gain tax, especially in the stock market. Once opened, I think the impact is even greater than NSL
    how then do we broaden the tax base then?

    VAT/GST are out of the question, since the gap between the rich and the poor is high.

    The CCP must have a plan to get more money from the tycoons for the
    "commom presperity". what is it?
    Last edited by nivek2046; 09-11-2021 at 12:29 PM.

  8. #18

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    Quote Originally Posted by nivek2046:
    how then do we broaden the tax base then?

    VAT/GST are out of the question, since the gap between the rich and the poor is high.

    The CCP must have a plan to get more money from the tycoons for the
    "commom presperity". what is it?
    I always think that Hong Kong should follow the example of Singapore, where the government should be fully involved in the real estate market. The government could even become the biggest developer and get most of the profits.
    This is just like the principle of MTR in Hong Kong, which uses the development of properties above the railway stations to drive the profit appreciation of the surrounding industrial chains, so that MTR can maintain cheap fares and the enterprises can still maintain high profits, unlike the MRT systems in foreign cities which have to operate at a loss.

    But if the government does this, it will be competing with Hong Kong's property tycoons for profits, which will change the political ecology of Hong Kong's long-standing cooperation between business and government. But after 2019, I don't think anything is impossible.
    Last edited by binance345; 09-11-2021 at 12:57 PM.

  9. #19

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    Quote Originally Posted by binance345:
    I have always thought that Hong Kong should follow the example of Singapore, where the government should be fully involved in the real estate market. The government could even become the biggest developer and get most of the profits.
    This is just like the principle of MTR in Hong Kong, which uses the development of properties above the railway stations to drive the profit appreciation of the surrounding industrial chains, so that MTR can maintain cheap fares and the enterprises can still maintain high profits, unlike the MRT systems in foreign cities which have to operate at a loss.

    But if the government does this, it will be competing with Hong Kong's property tycoons for profits, which will change the political ecology of Hong Kong's long-standing cooperation between business and government. But after 2019, I don't think anything is impossible.

    The Basic Law Article 50 says "The socialist system and policies shall not be practised in the Hong Kong Special Administrative Region, and the previous capitalist system and way of life shall remain unchanged for 50 years." The tycoons often use this to justify their actions.

    But the crony capitalism now practising in Hong Kong is abusive (to say the least) and anti-competitve. If the Central People's Government along with HKSAR government were to work together to end the abusiveness, i do not think it is a breach of Article 50 of the Basic Law.

    The only thing holding the government back from taking actions against the crony capitalism is that once the exodus of tycoons begins, there will be two questions: (1) who will replace them? the SOE enterprises from China? (2) if not, the HKSAR government themselves?
    Last edited by nivek2046; 09-11-2021 at 01:07 PM.

  10. #20

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    Quote Originally Posted by nivek2046:
    how then do we broaden the tax base then?

    VAT/GST are out of the question, since the gap between the rich and the poor is high.

    The CCP must have a plan to get more money from the tycoons for the
    "commom presperity". what is it?
    It's not really possible unless the government gives massive rebates to people who have paid the biggest tax bill of their life in the form of their property.

    Otherwise anyone who has bought a flat within the past few decades has indirectly paid a huge land premium plus whatever additional taxes are levied. Any tax on the rich will destroy one of HK's biggest advantages and any other tax will squeeze the middle class who already carry a heavy burden.
    shri likes this.