Mainland Chinese buyers make comeback as luxury Hong Kong homes snapped up
Investors from across the border are slowly snapping up luxury homes in Hong Kong after staying away following the imposition of heavy taxes
Mainland investors are making a cautious return to the city's top-end residential property sector, about 28 months after heavy taxes on non-permanent residents cooled the market, having become used to the extra stamp duties as they chase a limited supply of prime assets, property agents said.
The demand for luxury properties is seen rising further if Beijing continues its high-profile anti-corruption campaign.
"If the anti-graft campaign continues to intensify, it is believed some mainland money will be parked in Hong Kong to avoid any potential risks," said Joseph Tsang, the managing director of property consultancy JLL. "They want to leave the high-risk area."
Affluent mainlanders, once blamed for pushing Hong Kong home prices to stratospheric levels, saw their share in the sector shrink after the government imposed heavy stamp duties including a buyer's stamp duty of 15 per cent on non-permanent residents in October 2012.
But the latest data from private property agencies showed an increasing number of luxury homes being bought by mainlanders.
According to Centaline Property Agency, luxury homes bought by mainlanders accounted for 25.4 per cent of the value of new homes sold last year, up one percentage point.
Centaline expects the share will rise to 30 per cent this year.