Hong Kong’s Latest Crackdown on Property Prices Deters Buyers

Businessman William Yue was close to buying an apartment worth about HK$11 million ($1.4 million) in Hong Kong’s Kowloon Tong district. He may not be able to afford that after the government imposed additional taxes and raised down-payments to curb prices that have surged to a 13-year high.

Financial Secretary John Tsang on Nov. 19 announced some of the toughest measures yet in a yearlong battle to rein in home values that soared more than 50 percent since the beginning of 2009, sparking outcries that housing was becoming unaffordable and prompting the International Monetary Fund to warn last week that asset inflation may derail the city’s economy.