Charles Mok: Citizens need not worry about Hong Kong government's structural fiscal deficit. It is expected that property prices will not soar again.

Hong Kong Financial Secretary Paul Chan Mo-po said that the Hong Kong government expects the operating and consolidated accounts to return to a balanced budget in two and three years respectively. Citizens do not need to worry about the government facing structural deficits. Paul Chan Mo-po mentioned that property prices in Hong Kong doubled during the tenure of the former Financial Secretary, John Tsang Chun-wah, due to the Hong Kong government's halt in land development and insufficient infrastructure investment, leading to inadequate land supply. However, the current Hong Kong government will not allow a similar situation to occur again and will take control of land supply rights, closely monitor the market conditions, and ensure that housing supply is sufficient in both the present and future years to prevent another surge in property prices. Regarding the impact of cooling measures on the property market, Paul Chan Mo-po stated that the introduction of these measures in the past was necessary due to the imbalance between housing supply and demand, coupled with a large number of overseas buyers entering the market. However, after several years of effort, land and housing supply have become sufficient. It is estimated that in the next three to four years, there will be a potential supply of 110,000 new residential units on the market, giving the Hong Kong government the confidence to remove the cooling measures and allow the market to return to normal, promoting stable and healthy development in the residential property market. He also predicted that after the removal of cooling measures, more owners would put their properties on the market, increasing supply, which is a positive development for the overall property market. However, he emphasized that property prices are influenced by various factors, including supply and demand, interest rates, economic conditions, etc., and the government will take timely and appropriate measures.