There are indications the government's latest measures to cool the property market have had an instant impact. This is partly due to the confusion the new rules have caused. The measures on stamp duty unveiled last Friday and put into immediate effect are ill-defined. An extra tax will apply to buyers and sellers, but the proportions have not been specified. Many people, including those wanting a new home, will now have doubts about whether to make a purchase.

The rules aim to curb speculation without defining who is a speculator. Stamp duty of up to 4.25 per cent is already payable on property purchases; the new rules impose an extra 15 per cent for flats bought and sold within six months, 10 per cent for those sold between six months and a year of purchase and 5 per cent for those sold one to two years later. The government says the levy is to be shared by buyer and seller, although it has left it to the two sides to negotiate their shares. If it is interested only in receiving the tax and not which party is speculating, critics could be excused for assuming that the levy's purpose is above all else to generate revenue.

Financial Secretary John Tsang Chun-wah said in unveiling the tactics that in the first nine months of this year 114 per cent more properties were sold 12 months or less after purchase than in the same period in 2009. The government cannot be faulted for taking aim at speculators, but not being specific about the rules to stop their activities is quite another matter. It must be remembered that for many people their home is a place to live as well as an investment. Also, there are cases where flats are bought and financial difficulties arise, necessitating a quick sale, or buyers find a property is not to their liking proves after making the purchase.