Scrapping Hong Kong property curbs will not lead to overheated market or encourage speculation, government says
- Financial Secretary Paul Chan says market conditions have changed since cooling measures were introduced about a decade ago
- Chan says the reduction in property restrictions and taxation will boost confidence in market and increase transactions
All restrictions on Hong Kong property sales were scrapped from Wednesday after a chorus of calls from the real estate sector and a nine months in a row fall in home prices and authorities reassured the public the move was unlikely to heat up the market and drive speculation.
The removal of the decade-old property cooling measures included the Buyer’s Stamp Duty designed to target non-permanent residents, the New Residential Stamp Duty for second-time purchasers, as well as a Special Stamp Duty aimed at homeowners who resold their property within two years.
The news came four months after the government lifted some property market cooling measures last October, which included a 50 per cent reduction in stamp duties paid by non-locals, companies and homebuyers who were not first-time buyers.
Financial Secretary Paul Chan Mo-po said the market had changed since cooling measures were introduced in 2010, when private flat supply failed to meet demand and property prices soared.
“We have considered the current market situation and the economy,” Chan said after the budget statement.
