Hong Kong home sales volume doubles after property curbs ditched last month but no jump in prices yet, industry leader says

Simon Siu, chairman of Estate Agents Authority, says decision to scrap extra stamp duties last month was ‘shot in the arm’ for ailing property market

One estate agency says transactions in city’s 35 largest housing estates hit three figures for two weeks in a row after change, highest level in almost two years

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The property market cooling measures were scrapped with immediate effect on February 28. Photo: Jelly Tse

Published: 6:00pm, 17 Mar 2024Updated: 3:53pm, 18 Mar 2024

The number of Hong Kong home sales has doubled in recent weeks after authorities scrapped decade-old property curbs last month but prices have yet to rise, an industry leader has said.

Simon Siu Chak-yu, chairman of the Estate Agents Authority, said on Sunday a decision to axe extra stamp duties on home transactions in last month’s budget was “a shot in the arm” for the city’s struggling property market.

“The property market has returned to normal, largely due to the withdrawal of the market-cooling measures,” he said. “No immediate rise in property prices has been observed, but we have seen a doubling of transactions in the property market, especially in the residential sector.”

An property agent puts up signs to publicise the removal of curbs on the property market after last month’s budget. Photo: Jelly Tse

More agents had inquired about renewal of their real estate licences, he said. There are more than 39,000 licensed property agents at present.

“The effect [of the move] is more business to our frontline workers in the real estate agency industry as a whole,” Siu said. “We absolutely welcome this.”

The cooling measures were scrapped with immediate effect on February 28, ending the imposition of a buyer’s stamp duty designed to target non-permanent residents, a stamp duty for second-time purchasers and a special stamp duty aimed at homeowners who resold their property within two years.

Leung Chun-ying imposed the curbs to rein in property speculation and reduce external demand when he was chief executive from 2012 to 2017.