(To watch the full press conference with sign language interpretation, click here.)

Chief Executive John Lee today said the Government made the decision to adjust the demand-side management measures for residential properties after assessing both the local situation and global factors on the property market.

Elaborating on his Policy Address initiatives at a press conference this afternoon, Mr Lee said the market situation has changed since the stringent measures relating to property prices were introduced.

“It was a time when speculation was very high, the trend of property prices kept going up, and also, people’s attention seemed to focus on property speculation and making quick money was the goal.

“After the introduction of those measures and in the recent examination of the situation, first of all the interest rate has gone up and it will remain high, the geopolitical situation is going to be complicated, the whole world is facing pressure in regard to economic development and also, property prices have already been going down from their height.”

Mr Lee added that he had heard a lot of suggestions during the Policy Address consultation period and had to strike the right balance when deciding to relax the measures.

“The Government has to come to a decision after making an assessment of the situation of Hong Kong, which includes not just locally but also internationally because the property market is highly affected by interest rates, by economic situations and also by sentiment.

“I have come to the stage, after taking into consideration all these things, that it is time to relax some measures.”