HK intends to lift supply of property

Hong Kong Financial Secretary John Tsang said the government is planning to lift the support of property in the market in an attempt to cool down housing prices.

The real estate market faces overheating concerns with housing prices rising by 10 percent since January this year, following a one-third gain in 2009, due to Asia's strong economy of Asia, mainland Chinese buying and record-low interest rates.

The Hong Kong government has been attempting to prevent a sharp increase in prices by slapping a higher stamp duty on luxury properties this year and promising to ramp up land supply.

The government is also intensifying its scrutiny on Hong Kong-based developers, like Henderson Land Development. Henderson had been subjected to a police investigation after it announced that it failed to close sales of several units in one of its luxury apartment projects.