Quick guide to Hong Kong's latest real estate bomb

Application List system has been suspended.

According to BBVA Research, on the heels of increasing the Stamp Duty rates for property transactions last Friday, the Hong Kong government announced the suspending of the Application List system starting in April.

Under the Application List system, the government only puts a piece of land on sale if real estate developers show interest in it and offer a ‘guaranteed’ bid price.

"The system was introduced in 1999 to restore people’s confidence in the property market following the Asian Financial Crisis, but it has come under increasing criticism as housing prices have skyrocketed. In its stead, the government will increase the land supply through active auctions, regardless of whether there is preliminary interest," BBVA said.