Hong Kong’s tax cuts for buyers of cheaper homes has boosted sentiment and sales, say property agents
- Following government announcement, ad valorem stamp duty will be HK$100 (US$12.8) for homes worth up to HK$3 million
- Buyers want to get ahead of an expected boom in the housing market following the announcement of the ad valorem measure, say agents
The government’s move to cut ad valorem stamp duty is stimulating the city’s residential property market, with a number of transactions taking place on the same day that Financial Secretary Paul Chan announced the measure to help first-time homeowners, according to property agents.
According to Centaline, the buyer wanted to get ahead of an expected boom in the housing market following the announcement of the ad valorem measure.
“The initiative announced on Wednesday lowers the stamp duty on first home purchases and because of this market sentiment is expected to improve,” said Mandy Lam, a branch manager at Centaline. “We are seeing buying and selling decisions in the market speeding up.”
Meanwhile, the Long Garden estate in Yuen Long also recorded its first transaction this month after a 425-square feet property with two bedrooms was sold for HK$5.5 million, giving the previous owner a gain of HK$4.01 million on their original purchase price, said Centaline.
The Yuen Long district recorded six property transactions for used homes on Wednesday, after the announcement of the measure, according to Centaline. Inquiries for lived-in homes and appointments for property viewings have increased by as much as 30 per cent, while homeowners are becoming reluctant to extend more concessions to potential buyers, said the agency.
