Sleepless in Hong Kong: CY Leung’s property headache

Why is the Hong Kong property market important to Leung Chun-ying, who took office as the third chief executive of Hong Kong on July 1 It is because the government is the biggest landowner in Hong Kong. It gets 25% to 30% of its budget from land and land-related revenues, including stamp duties. If you were being cheeky, you would call the Hong Kong government Asia’s biggest property company.

Hong Kong property has been on an upward trend for the past eight years since the Sars epidemic in 2003. Prices have risen at a 14% annual rate, greater than the 5% return from the Hang Seng Index.

...