HONG KONG – Hong Kong’s economy is expected to grow 2.5 per cent to 3.5 per cent in 2024, Financial Secretary Paul Chan said on Feb 28, as he announced measures to bolster a flagging property market and support the economy.

The special administrative region, which expanded 3.2 per cent in 2023, will cancel all buy-side property tightening measures for residential properties and waive stamp duties payable on the transfer of Reit (real estate investment trust) units.

“We decided to cancel all demand-side management measures for residential properties with immediate effect. We consider that the relevant measures are no longer necessary amid the current economic and market conditions,” he said, adding that there is room to further adjust measures for the property market.

Hong Kong’s housing prices, once among the most expensive in the world, have plunged 20 per cent since their 2021 peak, dragged down by fragile market sentiment and a rise in interest rates. Some analysts expect a further 10 per cent drop in 2024.

The government will roll out more than HK$1 billion (S$172 million) in support measures for its tourism industry to help offset the impact from a struggling Chinese economy, which has resulted in fewer visitors from the mainland. The city will stage over 80 mega events in the first half of the year to boost tourism, including a monthly fireworks and drone show at its famed Victoria Harbour.

Economic growth has also been hampered by geopolitical tensions between China and the US, while capital flight turned the Hong Kong stock market into the worst-performing major index in 2023. REUTERS