Hong Kong Slashes Buyers’ Stamp Duty and Suspends Stamp Duties for New Foreign Talent to Boost Real Estate Sector
Hong Kong to Ease Stamp Duties to Boost Real Estate Sector
Hong Kong is implementing measures to stimulate its sluggish real estate sector by reducing buyers’ stamp duty and suspending stamp duties for newly arrived foreign talent. These measures, known as “spicy policies,” were initially introduced in 2010 to control soaring property prices in a low interest rate environment. However, due to rising interest rates, moderated economic growth, and a decline in property transactions and prices, the government has decided to relax these cooling measures.
The lukewarm post-Covid economic recovery in Hong Kong has resulted in sluggish residential transaction volumes in the once booming property market. Home prices have declined for four consecutive months, with the official housing price index standing at 339.2 in August, a 7.9% decrease from the previous year and a 4.2% decrease from April peaks.
Among the levies being relaxed are the stamp duty for non-permanent residents purchasing property, which will be halved to 7.5%, and the levy on additional property purchases by residents, which will also be halved to 7.5%.
Additionally, the special stamp duty imposed on property transactions held for less than three years will now only apply to transactions held for less than two years, amounting to 10% of the property price.
However, the suspension of all stamp duties on property purchases for new foreign talent is conditional upon these individuals obtaining permanent residency.
— This news story is contributed by Visegrad Info 24’s Vivian Kam.
This is a developing story. Please check back for updates.