HONG KONG, Feb 28 (AFP): Hong Kong has axed three major property transaction taxes in a bid to revive its depressed housing market, finance minister Paul Chan said in his annual budget speech Wednesday.
The finance hub is among the world's least affordable residential markets, but home prices retreated last year amid high interest rates and China's economic slowdown.
Chan said Hong Kong immediately scrapped three types of stamp duty, reversing measures introduced more than a decade ago to rein in speculation fuelled in part by mainland Chinese buyers.
"After prudent consideration of the overall current situation, we decide to cancel all demand-side management measures for residential properties with immediate effect," Chan told the legislature.
The cancelled taxes include stamp duties-which were once as high as 15 per cent-imposed on property buyers who are not Hong Kong permanent residents and on those purchasing a second home.
"No Special Stamp Duty, Buyer's Stamp Duty or New Residential Stamp Duty needs to be paid for any residential property transactions starting from today," Chan said.
"We consider that the relevant measures are no longer necessary amidst the current economic and market conditions," he said, noting that residential market sentiment became "very cautious" since the middle of last year.
Hong Kong had already reduced stamp duty last October in a bid to revive the market, but the reception had been largely muted.
Flat prices fell seven per cent during 2023 and transactions slid five per cent, to around 43,000.
HK scraps property taxes to revive sluggish market
FE Team | Published: February 29, 2024 00:47:34
HK scraps property taxes to revive sluggish market
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