Housing policies in Greater China and Singapore

Abstract

This paper provides a comparative study of housing policies in the greater China area and Singapore. We trace out the key features of the housing markets in the Chinese mainland, the Hong Kong SAR, the Macao SAR, and Singapore and review policies adopted in these markets. Soaring housing prices may distort capital allocation efficiency as money flows into housing market instead of more productive sectors, which poses threat to long-term sustainability and economic growth. Governments in these four jurisdictions have implemented various macroprudential policies and regulations in an attempt to curb housing demand, however the effectiveness of housing policies varies across markets. The housing prices stabilise in Singapore but continue to rise in Greater China despite the introductions of various tightening policies. The policy effectiveness is contingent on not only the characteristics of the market but also on its design and implementations.

Keywords:

• Housing policies
• mainland of China
• the Hong Kong SAR
• the Macao SAR
• Singapore

Notes

Acknowledgements

We thank the anonymous referee, Weida Kuang, Terence Chong and workshop participants in ‘Housing Policies in Greater China’ for helpful comments and suggestions. Donglai Luo provides excellent research assistance. All errors are authors’.

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1 Demographia International Housing Affordability Survey, http://www.demographia.com/dhi.pdf

2 Housing prices could have grown faster if we focus on the core area of Beijing and Shanghai. Because of city expansion, the average housing prices are biased towards the newly developed non-core area and do not appear as high as they should be.

3 The State Council of People’s Republic of China. 2007. Administrative Measures for Economic Housing (Jingji Shiyong Fang Guanli Banfa), http://www.gov.cn/zwgk/2007-12/01/content_822414.htm

4 Housing in Figures 2018, Transport and Housing Bureau, the Hong Kong SAR, https://www.thb.gov.hk/eng/psp/publications/housing/HIF2018.pdf

5 http://www.1823.gov.hk/eng/FAQ/023118/index.shtm

6 Statistics and Census Service, the Macao SAR government.

7 http://www.hdb.gov.sg/

8 Macao Institute of Housing. http://www.ihm.gov.mo/zh/node-812

9 Macao Institute of Housing. http://www.ihm.gov.mo/zh/node-812

10 Macao Institute of Housing. http://www.ihm.gov.mo/zh/node-104

11 387/2013 Dispatch of Chief Executive Officer, the Macao SAR. https://bo.io.gov.mo/bo/i/2013/51/despce_cn.asp#387

12 https://www.hdb.gov.sg/cs/infoweb/about-us

13 https://www.hdb.gov.sg/cs/infoweb/residential/buying-a-flat/new/hdb-flat

14 http://zjw.beijing.gov.cn/bjjs/zfbz/zcfg/sgwbjjqxwj/363825/index.shtml

15 http://www.shanghai.gov.cn/nw2/nw2314/nw2319/nw12344/u26aw54566.html

16 See https://sc.isd.gov.hk/TuniS/www.info.gov.hk/gia/general/201903/15/P2019031500936.htm for Hong Kong and https://bo.io.gov.mo/bo/i/2017/43/despce_cn.asp for Macao.

17 The Long Term Housing Strategy, Transport and Housing Bureau, the Hong Kong SAR. https://www.thb.gov.hk/eng/policy/housing/policy/lths/

18 For example, low income family can get additional CPF Housing Grant (AHG) to buy a new flat or a resale flat, with the grant ranging from US$3,619 (S$5,000) (for families with incomes between US$3,258≈S$4,501 to US$3,619≈S$5,000) to US$318,494 (S$440, 000) (for households with incomes below S$1,500). Special Housing Grant (SHG), introduced in 2011, allows eligible households to get between US$3,619 (S$5,000) to US$28,954 (S$40,000) to buy four-room or smaller new flats from HDB.

19 The Long Term Housing Strategy, Transport and Housing Bureau, the Hong Kong SAR. https://www.thb.gov.hk/eng/policy/housing/policy/lths/

20 GSH is short for Green Form Subsidised Home while SSF is Subsidised Sale Flats.

21 https://www.lincolninst.edu/publications/articles/affordable-housing-china

22 Constitution of the People’s Republic of China.

23 Provisional Regulations on the Transfer and Transfer of the Right to Use of State Owned Land in People’s Republic of China (Zhonghua Renmin Gonghe Guo Chengzhen Guoyou Tudi Shiyongquan Churang he Zhuanrang Zanxing Tiaoli).

24 Provisional Regulations on the Transfer and Transfer of the Right to Use of State Owned Land in People’s Republic of China (Zhonghua Renmin Gonghe Guo Chengzhen Guoyou Tudi Shiyongquan Churang he Zhuanrang Zanxing Tiaoli).

25 Land Department, the Hong Kong SAR. https://www.landsd.gov.hk/en/service/landpolicy.htm

26 https://www.scmp.com/article/621821/Macao-hold-first-open-bidding-land-sale-almost-four-years

27 2019 Policy Address of Macao SAR. https://www.policyaddress.gov.mo/policy/home.php?lang=en

28 https://www1.sla.gov.sg/

29 State Lands Act. https://sso.agc.gov.sg/SL/SLA1886-R1?DocDate=20021025

30 https://www.hdb.gov.sg/cs/Satellite?c=Page&cid=1383799115277&pagename=InfoWEB%2FPage%2FArticleDetailPage&rendermode=preview

31 https://www.hdb.gov.sg/cs/Satellite?c=Page&cid=1383799115277&pagename=InfoWEB%2FPage%2FArticleDetailPage&rendermode=preview

32 https://www.hdb.gov.sg/cs/Satellite?c=Page&cid=1383799115277&pagename=InfoWEB%2FPage%2FArticleDetailPage&rendermode=preview

33 https://www.ird.gov.hk/eng/faq/avd.htm

34 https://www.iras.gov.sg/IRASHome/Other-Taxes/Stamp-Duty-for-Property/Working-out-your-Stamp-Duty/Buying-or-Acquiring-Property/What-is-the-Duty-that-I-Need-to-Pay-as-a-Buyer-or-Transferee-of-Residential-Property/Additional-Buyer-s-Stamp-Duty–ABSD-/

35 Rating and Valuation Department. https://www.rvd.gov.hk/en/public_services/rates.html

36 http://www.dsf.gov.mo/tax/tax_downloadapps.aspx?lang=en

37 https://www.iras.gov.sg/irashome/Property/Property-owners/Working-out-your-taxes/Property-Tax-Reliefs/Lower-Property-Tax-Rates-for-Owner-Occupied-Residential-Properties/

38 IMF Country Report No. 19/123.

39 https://www.hkma.gov.hk/media/eng/doc/other-information/FAQ_J1_Table_Eng.pdf

40 IMF Country Report No. 19/123.

41 https://www.mas.gov.sg/regulation/explainers/tdsr-for-property-loans/calculating-tdsr-thresholds