Sun Hung Kai Properties

Luxury flats poised to hit market in bid to beat stamp duty rise

PUBLISHED : Thursday, 25 February, 2010, 12:00am
UPDATED : Thursday, 25 February, 2010, 12:00am

Expect a surge of new luxury flats on the market in the next few weeks as developers rush to avoid higher stamp duty on properties priced above HK$20 million, which takes effect on April 1.

At least six high-end developments are in the pipeline.

Meridian Hill in Kowloon Tong will be offered for sale in the next two weeks, marketing agent Jones Lang LaSalle says.

The project, owned by an unidentified US fund, comprises 103 flats ranging from 1,300 to 2,200 square feet with targeted selling prices of HK$20,000 to HK$30,000 per sq ft.

Then there is Larvotto in Ap Lei Chau, jointly developed by Sun Hung Kai Properties, Kerry Properties and Paliburg Holdings. Sun Hung Kai is also set to sell its phase three development of Peak One in Sha Tin. The minimum selling price of both projects is HK$60 million per flat.

Henderson Land Development is ready to sell its 153-unit Hill Paramount, also in Sha Tin, at a minimum price of HK$20 million each. The flats range from 1,500 to 5,300 sq ft and there are also four houses of 6,300 sq ft. Other projects being prepared for launch are Soundwill Holdings' WarrenWoods and Hong Kong Holdings' Serenade, both in Tai Hang.

Benny Wong, executive director at Hong Kong-based Pan Asian Mortgage Advisory, said even though developers might try to beat the April 1 deadline, the impact of the 50 basis points rise in stamp duty was not significant in terms of total investment costs.

Stamp duty on transactions of properties valued at more than HK$20 million will be increased from 3.75 per cent to 4.25 per cent. This means buyers need to pay an extra HK$100,000 when buying a HK$20 million home.

Stamp of approval

The number of basis points by which stamp duty has been raised on homes costing more than HK$20 million: 50