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Hong Kong property
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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

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Ad valorem tax cut for cheaper homes has boosted Hong Kong property market. Photo: SCMP / Sam Tsang
Cheryl Arcibal

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.

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Following the announcement, Shatin Plaza estate in Shatin-Tai Wai district recorded its first home sale this month, with a three-bedroom flat sold for HK$10.38 million (US$1.32 million) on Wednesday night, according to Centaline Property Agency. The district has recorded 154 secondary market transactions this month.

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.

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“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.

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